CME Emerging Crypto Index Excludes Bitcoin and Ethereum
The Chicago Mercantile Exchange (CME) has launched its Emerging Crypto Index, a benchmark for institutional investors to track the performance of cryptocurrencies beyond Bitcoin and Ethereum. The index, which excludes the two largest cryptocurrencies by market capitalization, uses a methodology that gives more weight to assets with higher free-float capitalization.
According to research from CF Benchmarks, the administrator of the index, BNB, XRP, Solana, and HYPE are currently assigned a combined 92.7% indicative weight in the Emerging Crypto Index. This means that these four tokens may dominate the benchmark's performance.
The CME Emerging Crypto Index does not currently settle futures, ETFs, or funds, meaning it is primarily used as a measurement tool for institutional investors to value their portfolios and compare regional performance. The index provides real-time pricing for eligible altcoins, which can help institutions track market trends and make informed investment decisions.
The launch of the Emerging Crypto Index is an important development in the crypto space, as it provides a new benchmark for institutional investors to gauge the performance of cryptocurrencies beyond Bitcoin and Ethereum.