CME launches a new cryptocurrency index that does not include Bitcoin and Ethereum

On Monday, CME Group officially launched two multi-asset cryptocurrency benchmark indices, one covering a broad market index and a "Emerging Crypto Index" specifically measuring large crypto assets beyond Bitcoin and Ethereum. The CME CF Emerging Crypto Index excludes Bitcoin and Ethereum, tracking a total of 10 assets: BNB, XRP, SOL, HYPE, LINK, XLM, SUI, UNI, AVAX, and AAVE; while the CME CF Crypto Market Index includes Bitcoin and Ethereum in addition to the aforementioned 10 assets.

Both indices are weighted by free float market capitalization and undergo component adjustments and rebalancing every six months. The real-time version is calculated once per second and operates around the clock; the settlement version is calculated once daily and published at 4 PM London, New York, and Singapore/Hong Kong time. The methodology for the Emerging Index requires component assets to meet custody conditions, exclude meme coins, and set protocol usage rate screening thresholds based on the ratio of total locked value to total market capitalization. At the time of initial inclusion, assets that do not yet meet the general listing standards for cryptocurrency ETFs on U.S. national securities exchanges but are expected to be compliant within 30 days may temporarily enter the index with a maximum combined weight of 10%.

The index is designed to be investable and can be used for passive replication by funds and derivative settlements, continuing the precedent set by CME's launch of Nasdaq CME Crypto Index futures in June. CF Benchmarks stated that the Emerging Index can be licensed for financial products, investment funds, or derivative instruments.