Solactive has partnered with CoinMarketCap (CMC) to create new Cryptocurrency Benchmark Indices: the CMC Crypto 200 Index – powered by Solactive.
Initially, two indices are planned covering 200 crypto currencies, with one index including the top cryptocurrencies by market capitalisation and one subversion excluding the most prominent cryptocurrency Bitcoin (BTC).
The development of the indices was made possible due to a joint collaboration, with Solactive providing index calculation CoinMarketCap 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 tailor-made index solutions for its clients going forward.
The first version of the CoinMarketCap Index – powered by Solactive is a market capitalisation-weighted index consisting of the top 200 cryptocurrencies, which make up for more than 90 per cent of global crypto market capitalisation, a market currently worth over USD120 billion. The rationale behind the ex-BTC version of the index is to display the general market conditions in the crypto-currency space while at the same time avoiding market bias through the market’s focus currency Bitcoin, which to date contributes to nearly 51 per cent 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,” says Fabian Colin, Head of Sales at Solactive. “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,” 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.”
Both the CMC Crypto 200 Index – powered by Solactive as well as its ex-BTC version went live on 4 March and are featured in NASDAQ’s distribution feed called GIDS from 20 March henceforward. Additionally, the indices will be available on Bloomberg (CMC200 Index, CMC200EX Index) and on Refinitiv/TR Eikon (RIC: .CMC200 and .CMC200EX). The indices are weighted according to market capitalisation and are rebalanced quarterly.