CME Group launched its first market-cap-weighted crypto index futures on 8 Jun, giving traders a single contract to gain exposure to eight of the largest cryptocurrencies.
CME Debuts Nasdaq CME Crypto Index Futures, Tracks Eight Top Tokens
The new Nasdaq CME Crypto Index futures include Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Solana (SOL), XRP, Cardano (ADA), Chainlink (LINK) and Stellar (XLM), according to a CME Group statement released on 9 Jun.
The contracts are designed to mirror traditional equity index products, such as those based on the S&P 500 or Nasdaq 100, and offer a more cost-efficient way for clients to hedge crypto exposure or take a broad market view rather than trading individual coins.
"[The contracts] give clients a cost-efficient tool to hedge their risk or directly pursue broad-based crypto opportunities," said Giovanni Vicioso, CME Group’s global head of cryptocurrency products.
Sean Wasserman, head of index product management at Nasdaq, said the launch reflects growing demand for crypto benchmarks built with the same governance and transparency expected in traditional asset classes.
Follows 24/7 crypto trading launch
The new index futures follow CME’s rollout of around-the-clock crypto trading, which began on 29 May. In the first weekend of 24/7 trading, the exchange recorded more than 7,200 contracts, representing roughly $50mn in notional volume.
CME Group, which has a market cap of approximately $92bn, operates one of the world’s largest derivatives marketplaces. Its existing crypto offerings include futures and options on Bitcoin and Ether.