Popular cryptocurrency data website CoinMarketCap (CMC) on March 20, 2019, launched two comprehensive benchmark indices on financial data feeds from Nasdaq Global Index Data Service (GIDS), Bloomberg Terminal, Thomson Reuters Eikon, and Börse Stuttgart.
Two Indices to Track the Market
A lack of accurate data has been one of the vulnerable spots for the cryptocurrency industry. The problem has only become more prominent in recent times due to allegations of data manipulation on crypto exchanges and trading platforms.
In a bid to provide robust and up-to-date cryptocurrency metrics to top global news publishers, CoinMarketCap and Germany-based index provider Solactive AG have launched two comprehensive headline indices. These indices cover the top 200 cryptocurrencies by market capitalization.
The first index is named CMC Crypto 200 Index (CMC200) and provides data on more than 90 percent of the global cryptocurrency market, including bitcoin.
Conversely, the second index called CMC Crypto 200 ex BTC Index (CMC200EX), tracks similar data excluding bitcoin.
The latter index has been devised keeping in mind the need for tracking the performance of altcoins in a market which is typically dominated by bitcoin. The premier cryptocurrency currently accounts for roughly 50 percent of the total market capitalization of the industry.
Brandon Chez, the CEO of CoinMarketCap said:
“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.”
Indices to Be Rebalanced Every Quarter
CoinMarketCap has partnered with Solactive AG, a German financial index provider to develop and calculate both crypto indices. Notably, price data on cryptocurrencies will be provided by CoinMarketCap.
According to the blog post, the indices will be rebalanced on the last day of each calendar quarter. Further, the index constituent weights will be fixed five days prior to the rebalancing date.
Fabian Colin, head of sales at Solactive, stated that the partnership with CoinMarketCap data will also give his company a chance to develop indices based on the client’s custom requirements.
“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.”
On August 4, 2018, BTCManager reported how CoinMarketCap launched its new Application Program Interface (API) to help developers and businesses integrate the website’s crypto-related data into their apps.