CME's Nine-Asset Crypto Basket Dominated by Bitcoin and Ethereum

The CME Group has introduced a nine-asset crypto basket that is heavily weighted towards Bitcoin and Ethereum, with the two assets combining for 86.29% of the index.

The Nasdaq CME Crypto Index (NCI) is designed to provide institutions with a way to hedge or gain exposure to a diversified portfolio of cryptocurrencies through one trade.

The index is built using a dynamic methodology that selects constituents from a list of Core Exchanges and Core Custodians, and rebalances quarterly based on market capitalization and liquidity.

As of September 1, the basket held nine assets in the following order: Bitcoin (74.47%), Ethereum (11.82%), XRP (5.18%), Solana (3.73%), Hyperliquid (3.39%), Cardano (0.46%), Chainlink (0.43%), Stellar Lumens (0.31%), and Bitcoin Cash (0.22%).

Critics argue that the index's volatility profile will track Bitcoin closely due to its heavy weighting, making it less effective for traders seeking diversification.