CF Benchmarks added three new popular cryptocurrencies to its indices service. From May 14, Tezos (XTZ), Stellar (XLM), and EOSIO (EOS) are available through the platform. This is the largest expansion of covered cryptocurrencies for CF Benchmarks.
The new cryptocurrencies will add to Bitcoin (XBT), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), and Ripple (XRP).
Kraken Exchange, the sister company of CF Benchmark, announced the addition in its blog and said:
“Both Kraken and CF Benchmarks believe reliable and trustworthy indices are essential to mature and transparent markets, and that they are key enablers of market linchpins such as derivative contracts and lending products.”
CF Benchmark chooses new cryptocurrencies for its platform based on some factors. You see, the most famous cryptocurrency with the most significant market cap and the most massive user-base when you look at the previous ones.
These three new cryptocurrencies have a strong user-base, and also many products are developed with them. So there is undoubtedly some market that needs accurate indices for them. Besides, all of them are listed on major cryptocurrency exchanges and have significant liquidity. More exchanges and liquidity means CF can provide more accurate data to the market.
“We are excited about the potential of these new indices, and look forward to continuing to expand our available offerings in the future,” added Kraken.
CF Benchmark will publish daily indices for all new cryptocurrencies. A Settlement Price (PR) and a Spot Rate (RTI) will be published for each token. Those applications that want to settle derivative transactions like future contracts will use PR. Investors and exchanges use RTI to value tokens in real-time.
Institutions, trading firms, and data vendors are interested in price data and get their indices from CF Benchmark or similar firms. CME Groups and Kraken Futures use the data for settling futures contracts and “WisdomTree Europe to provide the iNAV for its listed Bitcoin ETP. Additionally, since 2014, Kraken has provided complete XBT market volume and order book data to the Bloomberg terminal. ”
CF Benchmarks publishes the detail about methodologies for all indices on its website free for all users.