Germany-based index provider Solactive announced today that it has partnered with cryptocurrency information and data provider CoinMarketCap (CMC) to create new Cryptocurrency Benchmark Indices, labeled: CMC Crypto 200 Index.
Initially, two indices are at the starting line covering 200 cryptocurrencies, with one index including the top cryptocurrencies by market capitalization and one subversion excluding the most prominent cryptocurrency Bitcoin (BTC).
The development of the indices was made possible through a joint collaboration, with Solactive providing index calculation using CMC’s data, which incorporates pricing from more than 200 crypto exchanges.
The direct access to CMC’s crypto market data allows Solactive to provide tailormade index solutions to its clients going forward.
The first version of the CoinMarketCap Index is a market capitalization-weighted index consisting of the top 200 cryptocurrencies, which make up for more than 90% of global crypto market capitalization, a market currently worth over USD 120 bn.
The rationale behind the ex-BTC version of the index is to show general market conditions in the crypto space while at the same time avoiding market bias through the market’s focus on bitcoin, which to date contributes to nearly 51% of all global trading volume.
“The ability to access CoinMarketCap data gives us the opportunity to develop custom indices for new clients. Conversations already started. We are looking forward to developing more crypto indices in the future, which, at the second step, optimistically speaking result in investable indices and might lead to further products. We are very proud to be chosen as CMC’s index provider of choice in this exciting journey.”
“We are excited to launch and share these indices with the market. 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.”
Both the CMC Crypto 200 Index – powered by Solactive as well as its ex-BTC version went live on March 4th and are featured in NASDAQ’s distribution feed called GIDS from March 20th henceforward. The indices are weighted according to market capitalization and are rebalanced quarterly.