Bitcoin Mining Giant Bitmain Launches Cryptocurrency Index

by | Dec 1, 2018 | Cryptocurrency, Cryptocurrency News

Bitmain | Mining Giant | Cryptocurrency Index

While Cryptocurrency ecosystem expands in all directions, the need to include some sort of streamlining process also becomes a necessity. Stepping towards it, Bitmain announced the launch of a cryptocurrency index this Friday.

The Index, developed by the Beijing-based cryptocurrency mining firm will serve as a useful benchmarking tool for cryptocurrency investors. An important tool that was sorely lacking in the cryptocurrency market. Jay Clayton, the Chairman of the Securities and Exchange Commission stated just this week that a cryptocurrency exchange traded fund (ETF), which have had faced many rejections from the hand of the SEC, can be approved after some key upgrades in the cryptocurrency market.

One of them being the lack of pricing data available to investors. Since a solid price data is a major part of constructing an ETF, Bitmain’s index could not just aid the ETF but also in its eventual approval by the regulator.

Cryptocurrency Index

Here are a few salient features of the new Index:

  • The Index will be denominated in US dollars.
  • Real-time spot price – the firm confirms that the index will be updated every second.
  • Reference price – A price that will be published once a day at 10:00 am Hong Kong time (02:00 am London time).
  • Spot Pricing – the Spot prices of 17 top cryptocurrencies by their market capitalization, will be listed.
  • BLC 10 – Bitmain will soon launch another index, the Bitmain Crypto Large Cap 10 Index. As the name suggests it will track a basket of the ten largest cryptocurrencies by market capitalization, with prices being updated every second.

The Bitmain explainer document stated:

“The index [has been] developed to provide institutional and retail investors with transparent, timely, methodology-based, and investable benchmark of the most active cryptocurrencies traded globally.”

Not being the first index dedicated to cryptocurrency, the Bitmain index follows the cryptocurrency performance benchmark index by Finance Magnates Intelligence Department. This particular index measures the condition of the main cryptocurrency markets. Composed of the four biggest cryptocurrencies, Bitcoin, Ethereum, Ripple (XRP) and BitcoinCash by market capitalization it tracks their price change. The initial value of the benchmark on September 30, 2017, was 5,000 points.

Read more: Crypto Market Surges As US Stock Market Recovers, Is There Any Correlation?

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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