Wednesday, April 24, 2019

CoinMarketCap Launches Cryptocurrency Indices on Nasdaq

CoinMarketCap, a cryptocurrency price-tracking website platform on March 20 announced its launch of two benchmark indices on certain platforms. These are Nasdaq Global Index Data Service (GIDS), Thomson Reuters Eikon (Refinitiv), Bloomberg Terminal, and Germany’s Börse Stuttgart.

CoinMarketCap Launches Two Cryptocurrency indices

Per the blog post, CoinMarketCap has launched two cryptocurrency indices on a number of platforms. A cryptocurrency index shows the performance or statistical data of multiple virtual assets in order to aid in their comparison. The data usually includes changes in price, reduction in volume, market capitalization, etc.

That being the case, CoinMarketCap’s new indices are known as the CMC Crypto 200 Index (CMC200) and CMC Crypto 200 ex BTC Index (CMC200EX). They support the first 200 cryptocurrencies based on their market capitalization and reportedly, are the most comprehensive in the market.

CMC200 and CMC200EX Differ by Support for Bitcoin

CMC200, for instance, includes Bitcoin, a virtual currency that accounts for 50 percent of the total market capitalization of cryptocurrencies. CMC200 also covers 90 percent of crypto assets launched in the market. CMC200EX, on the other hand, will exclude Bitcoin, while displaying the performance of other cryptocurrencies without Bitcoin’s influence.

Furthermore, Coinmarketcap outlined that the purpose of launching these indices is to give its visitors an easier way of referencing and tracking cryptocurrencies. According to Brandon Chez, CEO of CoinMarketCap, they will bring about greater accessibility and present crypto data in an easier to understand format.

Currently, the crypto assets on the indices are based on their present-day market capitalization. However, the indices will be updated or rebalanced on a quarterly basis. Any coin that needs to replace another on the index, will be named prior to when the rebalancing will occur.

Solactive AG Calculated and Administered the Indices

More light into the development reveals that the indices were calculated and administered by Solactive AG, a German index provider who also developed a
a Bitcoin Futures index for CBOE in December 2017. CoinMarketCap added that
Solactive will maintain the methodology used to create the indices. One of such is by rebalancing the duo on a quarterly basis.

Fabian Colin, Head of Sales at Solactive AG said:

We are very proud to be chosen as CMC’s index provider of choice in this exciting journey…The ability to access CoinMarketCap data gives us the opportunity to develop custom indices for new clients.

During the course of the week, CoinMarketCap included crypto asset letter grades known as Fundamental Crypto Asset Score (FCAS). The FCAS was developed by
Flipside, a blockchain analytics and it aims to show users how cryptocurrencies are evolving through the display of certain metrics.

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