The Chicago Mercantile Exchange (CME Group) has announced that it will include the Gemini exchange as a reference platform for prices of four cryptocurrencies. CME Group launched the first two products based on cryptocurrency prices in November 2016. These are the standardized reference rate “CME CF Bitcoin Rate Rate” and the spot index “CME CF Bitcoin Real-Time”.
Mark your ?. @Gemini will be added as a constituent exchange for the CME CF Bitcoin and Ether-Dollar Reference Rate and Real-Time Index, capturing wider market participation and increasing the robustness of the pricing indices. @CFBenchmarkshttps://t.co/c6T1kfOpu9 pic.twitter.com/m8mhii3p6H
– CMEGroup (@CMEGroup) August 8, 2019
Both have been declared as important steps towards the professionalization of Bitcoin (BTC) transactions and the acceptance of the asset by traditional trading giants.
In March 2018, the Group launched two similar products for Ether (ETH). “Ether-Dollar CME CF Reference Rate” and “CME CF Ether Real-Time Index”. They were launched in partnership with the exchange platform dedicated to Crypto Facilities futures contracts in the UK.
Apart from Gemini, which will be included starting August 30, these indices derive their value from the prices of Bitstamp, Coinbase, itBit and Kraken exchanges. Coinbase is not mentioned in relation to the Ether products of the Chicago Mercantile Exchange Group.
Crypto Price Indexes, a popular tool
The first cryptocurrency index was the NYSE Bitcoin Index of the New York Stock Exchange, launched in May 2015. Since then, products based on cryptocurrency prices have become increasingly sophisticated and widespread.
In June this year, half a million traders using Reuters and Bloomberg financial terminals received access to a new AI index for the top 100 cryptocurrencies and tokens.
London-based data provider CryptoCompare has launched an Exchange Benchmark product this year, which includes data from over 100 crypto exchanges worldwide.
At the end of April, Nasdaq introduced XRP Liquid Index (XRRLX) in its global data service. Nasdaq has previously launched Brave New Coin Bitcoin Liquid Index and Ethereum Liquid Index.
In March, CoinMarketCap announced the launch of two benchmarks for cryptocurrencies. They were listed on the Nasdaq Data Index Global Service, Bloomberg Terminal, Thomson Reuters Eikon and Börse Stuttgart.