Cryptocurrency index provider CF Benchmarks had announced that they will be introducing a new Index that will aim to accurately reflect the current supply of each crypto that is circulating. This index is being called the CF Benchmark Ultra Cap 5 which is rule-based along with the free-float market capitalisation weight. This index will be calculated continuously at every second of the day, month, year.
The CF Ultra Cap 5 Index
The newly launched index of CF Benchmark will represent $226.5 billion market capitalization at the time of their launch. This when compared to the FTSE-100 of UK Equity of 1984 it was just GBP 100 billion. This new index will represent prices through proprietary methodologies of calculation that are backed by research and the group’s experience of creating indexes that are unmatched in the market.
The new index will help financial communities by letting them follow an asset’s performance free from any regulatory and without any integrity questions being asked from the community.
What are CF benchmarks
CF Benchmarks is a UK Financial Conduct Authority (FCA) regulated and authorised Benchmark Administrator which comes under the European Union benchmark regulation. They are also the first FCA registered company (came in effect from January 01, 2020) who provide indices for the financial products within Europe.
How will this be useful?
This move will allow financial markets, products originated, traded under the UK’s FCA to use the index in their services as a benchmark. Sui Chung, CEO of CF benchmark commented that their company being the first holds pride in providing a unique index that will increase the transparency and market’s regulatory integrity.
The CF Ultra Cap 5 Index is capable of being replicated effectively immediately by an ETF or passive fund. An active fund’s relative performance can also be measured with minimalist tracking errors and costs. Investment management firm Wilshire Phoenix’, Will Cai who is a partner in the firm says that CF Benchmarks indices are giving new standards to the price integrity and providing tools that will create regulatory governance in assets with increased transparency and robustness.
Some other indexes from the CF Benchmark include XBT-USD, ETH-USD, LTC-USD, BCH-USD, EOS-USD, XTZ-USD, XLM-USD.
