CoinMarketCap, the leading cryptocurrency data provider, has announced the launch of two groundbreaking cryptocurrency benchmark indices across multiple major financial platforms. This strategic move brings crypto market data to traditional finance institutions, further bridging the gap between digital assets and mainstream investing.
Key Details About the New Indices
The two new indices will be available on:
- Nasdaq Global Index Data Service
- Bloomberg Terminal
- Thomson Reuters Eikon
- Börse Stuttgart
German index provider Solactive will calculate and administer both indices. This partnership leverages Solactive's extensive experience in index creation and CoinMarketCap's comprehensive cryptocurrency market data.
The Two New Benchmark Indices
CMC Crypto 200 Index (CMC200)
- Tracks the top 200 cryptocurrencies by market capitalization
- Includes Bitcoin in its calculations
CMC Crypto 200 ex BTC Index (CMC200EX)
- Also tracks the top 200 cryptocurrencies
- Excludes Bitcoin to measure market performance without BTC's influence
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Index Features and Rebalancing
Both indices will undergo quarterly rebalancing on the last day of each calendar quarter. This regular adjustment ensures the indices remain representative of the current cryptocurrency market landscape.
The decision to create an index excluding Bitcoin recognizes BTC's dominant position in the crypto market, where it typically accounts for about half of the total cryptocurrency market capitalization.
Solactive's Expertise in Crypto Indices
Solactive brings significant experience to this partnership, having previously developed the CBOE Bitcoin Futures index launched in December 2017. The company currently administers over 3,000 custom indices across various asset classes.
Fabian Colin, Solactive's Head of Sales, commented on the collaboration:
"Access to CoinMarketCap's data grants us the ability to develop custom indices for customers. Conversations have already started in this regard."
Growing Institutional Interest in Crypto Indices
This launch follows several other significant developments in cryptocurrency indices:
- Nasdaq introduced Bitcoin and Ethereum indices in February 2019
- VanEck's MV Index Solutions launched a Bitcoin index in November 2018
- Brave New Coin created reference rate indices for BTC and ETH
👉 Learn about institutional adoption of cryptocurrency
Market Implications
The availability of these indices on major financial platforms provides:
- Institutional investors with standardized benchmarks
- Greater transparency in cryptocurrency market performance
- New tools for portfolio construction and risk management
Frequently Asked Questions
Why did CoinMarketCap create two different indices?
The two indices serve different purposes. The CMC200 provides a complete market picture, while the CMC200EX allows investors to track performance without Bitcoin's outsized influence on market capitalization.
How often are the indices updated?
Both indices are rebalanced quarterly on the last day of each calendar quarter to maintain their representativeness of the current market.
What platforms will offer these indices?
The indices will be available on Nasdaq Global Index Data Service, Bloomberg Terminal, Thomson Reuters Eikon, and Börse Stuttgart.
Who calculates these indices?
German index provider Solactive calculates and administers both indices, bringing their extensive experience in index creation to the cryptocurrency space.
Why is Bitcoin's exclusion important?
With Bitcoin representing about 50% of total cryptocurrency market capitalization, an index excluding BTC provides clearer insight into the performance of other digital assets.
Are there other cryptocurrency indices available?
Yes, other notable indices include Nasdaq's Bitcoin and Ethereum indices and VanEck's Bitcoin index, demonstrating growing institutional interest in crypto benchmarks.
Conclusion
CoinMarketCap's launch of these benchmark indices marks a significant step in cryptocurrency market maturation. By making these tools available on major financial platforms, CoinMarketCap is helping to facilitate greater institutional participation in digital asset markets while providing all market participants with valuable benchmarking tools.
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