CME Group has launched two new crypto asset indices, further expanding its presence in the regulated crypto products market. One of these indices excludes Bitcoin and Ethereum, focusing instead on tracking large tokens such as XRP, Solana, BNB, Hyperliquid, providing a new benchmark for observing the performance of mainstream altcoins in the market.
Two sets of indices launched simultaneously
According to the index files published by CME, the newly launched indices are CME CF Emerging Crypto Index and CME CF Crypto Market Index. The former focuses on 10 large-scale crypto assets that do not include BTC and ETH, while the latter adds Bitcoin and Ethereum to the same asset basket.
- Emerging indices include BNB, XRP, SOL, HYPE
- The remaining components include LINK, XLM, SUI, UNI, AVAX, AAVE.
- Crypto Market Index Covers a total of 12 assets
Updated once per second.
CME indicates that the real-time values of the two sets of indices are updated every second and run continuously on a 24-hour basis. At the same time, the indices also provide a daily settlement version, with release times covering three time zone nodes: London, New York, and Singapore/Hong Kong.
In terms of methodology, both indices use free-floating market capitalization weighting. The higher the tradable market capitalization of an asset, the greater its weight in the index. The CME plan involves two reviews per year, in June and December, with component adjustments and rebalancing to be completed on the first working day of those months.
Can be authorized to funds and derivatives
As mentioned in the method description, CME, this new index is designed to serve as an investable benchmark that can support passive replication by funds and can also be used as a reference for derivative settlements. CF Benchmarks also lists both sets of indices as eligible for use in financial products, investment funds, and derivatives.
This means that the new index is not only used to reflect changes in spot prices but may also become the underlying benchmark for subsequent structured products and trading contracts.
Inclusion in the standards is not solely based on market capitalization.
The selection of components for a new index is not based solely on market capitalization. Taking Emerging Crypto Index as an example, the relevant assets must also meet custody requirements, and meme coins are excluded. CME also takes into account the usage of the protocol, including the ratio between the total locked-up value and the fully diluted market capitalization.
The document also mentions that when the index was first established, some assets that did not fully meet the national listing standards for cryptocurrencies on U.S. stock exchanges at that time could still be included if they were expected to meet the standards within 30 days. However, the maximum combined weight of such assets in the initial index would be limited to 10%.
Counterfeit coin products continue to expand.
CME has continued to expand its range of products related to altcoins this year. In May, the exchange launched Avalanche and Sui futures, which have now also been included in the new index basket. Previously, CME had already launched futures products linked to Bitcoin, Ethereum, Solana, XRP, Cardano, Chainlink, and Stellar.
In addition, by the end of May, CME will extend the trading hours for crypto derivatives to 24 hours a day, 7 days a week. With the launch of new indices, CME is gradually connecting single-token futures, composite index futures, and authorized index benchmarks to continue to improve its crypto asset product ecosystem.
