CME Group has introduced two new multi-asset cryptocurrency benchmarks, adding a broader set of market gauges beyond single-asset tracking. One of the indexes is built specifically around major altcoins by excluding Bitcoin and Ether, while the other includes the two largest cryptocurrencies alongside the same basket of tokens.
The launch adds benchmark products that can be used both as market measures and, according to CME and CF Benchmarks materials cited in the source, as reference rates for financial products, funds and derivatives.
Two indexes with different market scope
The CME CF Emerging Crypto Index tracks 10 cryptocurrencies: BNB, XRP, Solana, Hyperliquid, Chainlink, Stellar Lumens, Sui, Uniswap, Avalanche and Aave. Bitcoin and Ether are intentionally left out, making the benchmark a measure of large qualifying crypto assets outside the market’s two dominant tokens.
Its companion product, the Crypto Market Index, uses the same 10 assets but adds Bitcoin and Ether. That gives CME a separate 12-asset benchmark aimed at reflecting the large-cap crypto market with BTC and ETH included.
How the benchmarks are calculated
According to CME’s FAQ, real-time versions of both indexes are calculated every second and run around the clock. Separate settlement versions are published once a day at 4 p.m. in London, New York and Singapore/Hong Kong.
Weightings are based on free-float market capitalization. In practice, that means assets with a larger market value of tokens considered available for trading receive a bigger share of each index.
Eligibility rules go beyond size
The methodology for the Emerging Crypto Index does not rely on market capitalization alone. CME says eligible assets must also satisfy custody requirements, while meme coins are excluded from the basket.
The exchange also applies a protocol-use screen based on total value locked relative to fully diluted market capitalization. For the emerging index, the goal is to select the 10 largest assets that meet the rules after Bitcoin and Ether are removed from the universe, while the broader Crypto Market Index targets 12 qualifying cryptocurrencies with BTC and ETH still eligible.
Reviews, rebalancing and launch provisions
CME plans to review both baskets twice a year, with reconstitution and rebalancing set for the first business day of June and December. At those points, both the list of constituents and their weights can change as qualifying assets move in market value.
The methodology also includes a special rule for newly eligible assets when an index is first launched. Tokens that do not yet qualify under U.S. national stock exchange generic listing standards for crypto exchange-traded products may still be admitted if they are expected to comply within 30 days.
At inception, those not-yet-qualified assets can account for no more than a combined 10% weight. At later scheduled reviews, constituents are required to meet the generic listing standards in force at that time.
Intended use in financial products
The Emerging Crypto Index is described in its methodology as investible and capable of supporting passive replication by funds. The source article also says it can serve as a settlement benchmark for derivatives, suggesting a role beyond simply tracking spot market moves.
CF Benchmarks lists both the Emerging Crypto Index and the Crypto Market Index as available for licensing for financial products, investment funds and derivatives. CME has previously used a multi-token benchmark as the settlement basis for listed crypto derivatives, and the next confirmed step for these new indexes will be their ongoing daily publication and the scheduled June and December reviews of constituents and weights.
Source: crypto.news