CoinMarketCap, one of the leading cryptocurrency data analytics platforms, will have two of its crypto benchmark indices featured on platforms such as NASDAQ, Bloomberg, and Reuters. This development will help traders and investors track important cryptocurrency indices on these popular financial platforms.
CMC indices now available on NASDAQ, Bloomberg, and Reuters
Two cryptocurrency-based benchmark indices provided by CoinMarketCap (CMC) were launched with financial data fees on multiple platforms including the NASDAQ Global Index Data Service (GIDS), the Börse Stuttgart in Germany, Thomson Reuters Eikon (Refinitiv), and Bloomberg Terminal, as well as CMC’s own platform.
CoinMarketCap made this information public on March 20, adding that the benchmark indices will cover a lot of data, making it the most comprehensive crypto data offerings for those markets. The indices will include the leading 200 digital currencies by market cap, with one of them adding Bitcoin to the fold while the other one will not.
The first index with BTC is called the CMC Crypto 200 Index (CMC200), and it covers roughly 90 percent of the total digital currency market, the company revealed. The second index is called the CMC Crypto 200 ex BTC Index (CMC200EX). It tracks the performance of the market without the influence of BTC because Bitcoin currently accounts for more than half of the total market capitalization of cryptocurrencies.
The CEO of CoinMarketCap, Brandon Chez, mentioned that they are excited to introduce and share the benchmark indices with the broader financial market. The indices are aimed at promoting greater access to digital currency data in a format that makes them easier to understand, he added. A partnership with Solactive will help them expand the reach of cryptos into the broader financial markets and aid their adoption as well, Mr. Chez concluded.
To achieve this latest development, CMC collaborated with Solactive, a German-based financial indices provider. Solactive has been tasked with calculating and administering both the indices while also rebalancing them every three months. CoinMarketCap, on its part, will provide the price data for the indices.
Solactive is already active in the crypto space. The company calculated the index for the CBOE Bitcoin Futures back in 2017 when it was first launched. Fabian Colin, the head of sales at Solactive, stated that data from CoinMarketCap would give their company an opportunity to develop custom indices for new clients in the crypto space. He added that they are looking forward to creating more crypto indices in the near future, which could most likely lead to investible indices and the development of other products.
CoinMarketCap, while explaining how Solactive will rebalance the indices, stated that “The index constituent weights are fixed on the selection date, which is five days before the rebalancing date. At this time, all eligible cryptocurrencies are ranked by their current market capitalization. This ensures that growing or shrinking cryptocurrencies are accurately represented in the overall index. At any time, if a cryptocurrency is no longer eligible for membership, a replacement is named at the next scheduled rebalancing.”
CoinMarketCap has been recording some improvements over the past few days. Earlier this week, the data analytics platform added crypto asset letter grades to its website. The asset letter grades called the Fundamental Crypto Asset Score (FCAS) were provided by blockchain analytics firm, Flipside Crypto. The metric evaluates details regarding cryptocurrencies, such as developer activity, along with a host of other transaction data. This latest development will allow crypto users to find additional relevant information about a cryptocurrency aside the price.
Addition of CMC indices to Bloomberg, Reuters, and NASDAQ good news for crypto
The addition of the two indices to highly popular financial platforms is good news for the crypto market. The above-mentioned economic platforms are popular amongst institutional investors, and being able to find crypto information on those sites could help convince some of them to enter this emerging market.