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.
Here are a few salient features of the new Index:
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?
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