Derivatives Exchange Giant CME Group Adds 11 New Cryptocurrency Reference Rates – Finance Bitcoin News

CME Group is a Chicago-based derivatives and trading platform that specializes in global markets. It plans to introduce 11 new reference rate rates linked to certain crypto assets. The exchange-traded and other investment vehicles are often leveraged in order to increase the real-time indices and reference rates bolstered with CF Benchmarks.

CME Group and CF Benchmarks Give Reference Rate Treatment To 11 Crypto Assets

CME Group is adding 11 more cryptocurrencies to the firm’s existing bitcoin and ethereum reference rates. CME CF Reference rates, a crypto reference rate like CME CF Rates, are used often as a benchmark to exchange-traded funds and other financial products.

New rates include polygon, star, stellar, algorand and bitcoin cash. Bitstamp. Coinbase. Gemini. Itbit. Kraken. and LMAX will supply pricing data. Each coin will leverage two exchanges, CME Group’s announcement discloses.

“As the digital asset market continues to expand, there is an increasing demand for reliable, standardized cryptocurrency pricing information based on robust, regulated reference rates,” Tim McCourt, CME Group’s global head of equity and FX products said in a statement. McCourt said:

The new benchmarks capture more than 90% of today’s total cryptocurrency market capital and are intended to help traders and institutions manage price risk and create ETFs.

You can use the new reference rates of 11 crypto assets as benchmarks to ETPs, bundled funds and derivatives market markets, ETPs, or diversified funds. Elliot Johnson is the chief investment officer for Evolve ETFs. He explained that Evolve ETFs uses CME CF Refer Rates to trade its crypto exchange-traded fund.

“Evolve’s physical-crypto ETFs rely on CME CF Reference Rates to provide liquidity, tight tracking, and reliable NAV for investors,” Johnson explained. “We’re very excited to see the CME CF index family expanding to lay the foundation for new, innovative ETFs in this highly coveted asset class,” the Evolve executive added.

CME Group’s new reference rates follow the launch of Micro Bitcoin (MBT) and Micro Ether futures (MET). MBT and MET contracts are “sized at one-tenth of their respective underlying tokens in size.” CME Group and CF Benchmarks plan to launch the 11 new crypto reference rates on April 25.

Let us know your thoughts on CME Group’s addition of 11 cryptocurrency reference rates. Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman is an active participant in the cryptocurrency community from 2011. Redman is passionate about Bitcoin and open-source codes. Redman has contributed more than 5,000 articles to Bitcoin.com News since September 2015. These articles are about disruptive protocols that are emerging.