In a bid to improvise on data analytics and authentication of its statistic, Coinmarketcap.com has introduced two new crypto indices on NASDAQ GIDS, Bloomberg Terminals, Thomson Reuters Eikon (Refinitiv), and Börse Stuttgart.
Solactive AG, a German Index Provider, will administer the indices. Solactive AG was also the administrator and facilitator of the Bitcoin Futures contract introduced by CBOE in December 2017.
“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.”
Details of the Indices
Recently, coinmarketcap had weighted 200 cryptocurrencies on a variety of parameters and also rated them accordingly. The two indices are CMC Crypto 200 Index (CMC200), which includes Bitcoin, primarily covers more than 90% of the global cryptocurrency market. Another index excluding Bitcoin, CMC Crypto 200 ex BTC Index (CMC200EX).
The ticker symbols on Bloomberg are CMC 200 Index and CMC 200EX Index. Similarly, on the RIC code, it is .CMC200 and .CMC200EX.
Rebalancing of Indices
An exciting addition to the indexes is the rebalancing condition that will be administered by Solactive AG. The process would involve reassigning different degrees of weighage to cryptocurrencies after each quarter, i.e., for example, if XRP has been given 10% weightage for one quarter, it can be ‘rebalanced’ to 5% or even 20%.
“We are very proud to be chosen as CMC’s index provider of choice in this exciting journey,” expresses Fabian Colin, Head of Sales at Solactive. “The ability to access CoinMarketCap data gives us the opportunity to develop custom indices for new clients.”
Coinmarketcap is the leader in calculating coin metrics. It has been a trendsetter for some parameters like market capitalization, Bitcoin dominance, circulating supply and so on. Since the indices would be tracked on esteemed Financial platforms like Bloomberg and NASDAQ, it provides informal certification to the statistic on coinmarketcap.
The indices can also be licensed by other institutions who seek to use the data for information purposes or build an actual product on it.