Highlights:
- CME Group and CF Benchmarks launch real-time indices for XRP and ICP
- New benchmarks provide daily reference rates and enhance market transparency
- Potential XRP ETF speculation grows with standardized cryptocurrency benchmarks
In partnership with CF Benchmarks, CME Group has announced plans to launch real-time indices and reference rates for Ripple’s XRP and Internet Computer (ICP), marking a significant step in cryptocurrency benchmarking.
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Starting July 29, benefit from transparent pricing on two new cryptocurrencies as CME CF Internet Computer-Dollar and XRP-Dollar Reference Rates and Real-Time Indices are added to our expanding suite of benchmarks. https://t.co/1kn5BPZi4C pic.twitter.com/jqcJPInSt9
— CME Group (@CMEGroup) July 11, 2024
New Benchmarks for Ripple and Internet Computer
CME Group is partnering with CF Benchmarks to enhance transparency in cryptocurrency pricing and improve market price discovery. Starting July 29, these benchmarks will provide daily calculated and published reference rates for XRP and ICP, although they will not be tradable as futures contracts.
This initiative aims to support the growing institutional adoption of cryptocurrencies by offering tools to help Manage price volatility and provide a reliable standard for valuation. Brad Garlinghouse, Ripple CEO, expressed excitement about the new benchmarks on social media. He emphasized the importance of transparent and robust crypto pricing.
👀First step towards institutional crypto products is to have a trusted benchmark reference rate. Nice to see @CMEGroup and @CFBenchmarks collaborate on this for an XRP index. The market has spoken. https://t.co/cKqqMLswdw
— Brad Garlinghouse (@bgarlinghouse) July 11, 2024
New Crypto Indices Boost Transparency and Data Integrity
The new indices will reflect real-time price updates every second throughout the year, enhancing the ability to track cryptocurrency prices accurately. This frequency and transparency aim to meet investors’ needs for high-quality data. It supports informed investment decisions. The reference rates, however, will capture each cryptocurrency’s USD price and be published daily at 4 p.m. London time.
These benchmarks will draw on pricing data from top cryptocurrency exchanges such as Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital. Additionally, an oversight committee, including members from CME Group and CF Benchmarks, will ensure the integrity of the benchmarks. Their expertise ensures accuracy in reporting. This collaborative effort underscores a commitment to uphold the same rigorous standards as other CME CF Single Asset Series products.
Advancing Crypto with XRP ETF Speculation and New Indices
The announcement has also sparked discussions around the potential introduction of an XRP ETF. While such speculation has been rife, establishing regulated, standardized benchmarks could be a preliminary step toward realizing such financial products. These developments show increasing acceptance of cryptocurrencies like XRP and ICP in finance. They could lead to more integrated crypto investment options.
CME Group’s imminent release of real-time indices and reference rates for XRP and ICP marks significant progress in cryptocurrency benchmarking. Consequently, these benchmarks boost market transparency and facilitate the wider acceptance of cryptocurrencies in institutional portfolios by delivering transparent, accurate, and timely data. As the industry evolves, these tools will be invaluable in shaping the future dynamics of cryptocurrency investment and valuation.
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