Crypto data provider, CoinMarketCap, have launched two cryptocurrency benchmark indices on financial data feeds Nasdaq Global Index Data Service (GIDS), Bloomberg Terminal, Thomson Reuters Eikon (Refinitiv) and Germany’s Börse Stuttgart. The two indices are calculated and administered by German index provider Solactive, according to a post on the company’s blog.
These indices will be the most comprehensive ones on the market, covering the Top 200 cryptocurrencies by market capitalization, one including Bitcoin, and one without. The first index is named CMC Crypto 200 Index (CMC200), which includes Bitcoin, and covers more than 90 percent of the global cryptocurrency market. The other which tracks the market’s performance without the influence of bitcoin, is named CMC Crypto 200 ex BTC Index (CMC200EX).
“We are excited to launch and share these indices with the market,” says Brandon Chez, CEO of CoinMarketCap, “These indices will promote greater accessibility to cryptocurrency data in an easier-to-digest format. In partnership with Solactive, our chosen index administrator, we hope these professionally-calculated indices will serve to expand the reach of cryptocurrencies into the larger financial markets”.
Opportunity To Develop Custom Indices
Solactive, the independent index provider who operate across the globe, will calculate and administer the indices and strictly adhere to the stated methodology.The German company will also help with the rebalancing of the indices on a quarterly basis. However, Price data will be provided by CoinMarketCap.
“We are very proud to be chosen as CMC’s index provider of choice in this exciting journey,” said Fabian Colin, Head of Sales at Solactive. “The ability to access CoinMarketCap data gives us the opportunity to develop custom indices for new clients. Conversations have already started. We are looking forward to developing more crypto indices in the future, which will optimistically result in investable indices and might lead to further products”.
Binance CEO Questions Distortions Of CoinMarketCap
In response to a recent report by trading analytics platform The Tie, who allege that most crypto exchanges are reporting false volumes, Binance CEO, Changpeng Zhao (CZ) called CoinMarketCap into question.
He said that CoinMarketCap is the highest traffic website in the space and the biggest referrer for all exchanges, and added: “Ranked high on CMC has benefits for getting new users. But at the expense of destroying credibility with pro users. Many forget the later part”.