A recent blog post by the leading data provider, CoinMarketCap, explains their launch of cryptocurrency benchmark indices on NASDAQ GIDS, Bloomberg Terminals, Thomson Reuters’ Eikon (Refinitiv), and Börse Stuttgart. Each of these is amongst the largest platforms, which means cryptocurrency data will be accessible to hundreds of thousands, if not millions of investors. As of October 2016, there were 325,000 Bloomberg Terminal subscribers globally.
There are two indices, one including Bitcoin and one without. The primary index, which includes Bitcoin, is called the CMC Crypto 200 Index (CMC200), and it covers over 90% of the cryptocurrency market globally. The second index, not including Bitcoin is called the CMC Crypto 200 ex BTC index (CMC200EX), is used to track market performance without Bitcoin’s influence, which accounts for roughly 50% of the total cryptocurrency market cap.
CEO of CoinMarketCap, Brandon Chez commented on the news saying:
“We are excited to launch and share these indices with the market. 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.”
They have partnered with Solactive AG, an independent German index provider, to calculate and administer the indexes, including rebalancing them quarterly. Solactive AG administers over 3,000 custom indices, so they are well trusted to calculate accurately and uphold to any industry standards.
Fabian Colin, the head of sales over at Solactive AG mentioned that:
“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. Conversations have already started. We are looking forward to developing more crypto indices in the future, which will optimistically result in investable indices and might lead to further products.”
Regarding CoinMarketCaps prestige, the blog post also acknowledges the fact that they made “market capitalization” a popular term back in 2013 when they launched. They are also known to show other statistics, reliably, such as circulating supply.
Putting thought into how they calculate this metric, the post reads that “the circulating supply metric used by CoinMarketCap accounts for locked, reserved or non-saleable coins or tokens that cannot affect the price of a cryptocurrency, and hence are not factored into a cryptocurrency’s market capitalization.”
These indices are currently live across the platforms mentioned, and we hope this is only the beginning for what is to come. As more mainstream systems integrate with cryptocurrency data, then mainstream investors will want to educate themselves on this new asset class.