CME Group announces the launch of three crypto reference rates

In its recent announcement, derivatives market giant, CME Group, revealed plans to launch three new crypto reference rates. The launch is expected to take place by the end of the month, and it will include reference rates for three cryptocurrencies — Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ). The company also noted that this is being done in partnership with CF Benchmarks, the leading provider of crypto benchmark indices, which is authorized and regulated by the United Kingdom’s FCA.

What will the new product offer?

The announcement further notes that the rates will show the price of each token in US dollars and that they will be published once per day, at 4 pm BST. However, the respective real-time index will be published each second, 24/7/365.

The data for the reference rates will come from highly reputable sources, including some of the largest and most trusted exchanges in the world, such as Coinbase, Kraken, Gemini, Bitstamp, itBit, and LMAX Digital. The Group further noted that CME CF Reference Rates and real-time indices would capture over 92% of the investable cryptocurrency market cap.

The group’s Global Head of Cryptocurrency Products, Giovanni Vicioso, further noted that the new benchmarks are designed to allow institutions, individual traders, and other users to access a much broader range of tokens by using a suite of products that they are already well familiar with.

This will allow traders of all kinds to access the assets with more confidence, and it will allow them to accurately manage crypto price risk, value portfolios, create structured products like ETFs, and alike.

CME CF Reference Rates and Real-Time Indices are based on robust methodologies that feature regular expert oversight and are generally created to meet the need for regulated, transparent pricing.

Interest in crypto-based financial products is rising

CEO of CF Benchmarks, Sui Chung, noted that investors are increasingly seeking exposure to a wider range of cryptocurrencies as they learn more about these assets. With interest skyrocketing, the two companies have decided to react, but in a way that offers regulated investment products, spearheaded, of course, by CME Group’s Crypto derivative suite. This has already helped to open a lot more investors to crypto and to allow those already interested in accessing the assets in a safe way, where they are in control.

Meanwhile, CF Benchmarks can provide robust reference rates, which is why it is proud to be able to participate in the creation of a regulated financial product for the new asset class that investors are so interested in. Its goal, just like that of the CME Group, is to help offer a product that investors would want to use and be able to manage exposure with confidence.

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