US-based cryptocurrency exchange Coinbase has just launched a new benchmark index for tracking the digital asset market.
The listed company reported this in a statement say the Coinbase 50 Index (COIN50) is a regulated benchmark that represents the 50 largest crypto assets on its platform that meet the fundamental criteria for token economics, blockchain architecture and security.
Nasty qualify To access the index, the assets must not be linked to other digital assets, must have most of their token supply in public circulation, and must not have any known security vulnerabilities.
“The Coinbase 50 Index, which is rebalanced quarterly, is a market capitalization-weighted index of the top 50 assets that meet the index’s criteria. Traders can use the index to track the performance of the broader crypto market and benchmark their returns.”
The exchange says that while the Coinbase 50 Index currently covers around 80% of the crypto market cap, the plan is to launch a significantly broader index as the market grows and diversifies.
“This path lays the foundation for our indices to evolve along with the industry, providing critical price discovery and remaining a comprehensive benchmark for the crypto economy.”
Eligible institutional and retail users can now trade the index via a COIN50 perpetual futures contract on Coinbase International Exchange and Coinbase Advanced, although the contract is not available to traders in the US, UK and Canada.
The exchange says it is exploring more ways to offer traders exposure to the index.
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Featured image: Shutterstock/IR Stone
