Every day more traditional financial companies decide to take the leap and enter the crypto market. Thus, in recent months companies like MicroStrategy and investors like Paul Tudor Jones have openly supported Bitcoin. Therefore, it should not be surprising to learn that CBOE is betting on cryptocurrencies for 2021, preparing the launch of its own crypto index.
Anyone with knowledge of how the financial market works should be familiar with stock indices. They reflect the market performance of a series of financial assets. Assigning to each one of them a specific weight within the total value of the index, which allows to know at a glance the state of a market.
Today, the most famous indices in the world are the S&P 500 and the NASDAQ 100, both related to the American stock market. However, there are dozens of indices around the world, and these are usually a sign of maturity for a market. Well, it shows the interest that exists on the part of traditional investors in certain financial products.
That is why the emergence of cryptocurrency indices in recent years is important news for these financial assets. With large companies such as S&P Global Inc and CBOE announcing that they will create their own cryptocurrency indexes by 2021. One of the most relevant advances for the market in its entire existence.
The CBOE index
In the case of CBOE Global Markets, the company that owns the Chicago futures exchange CBOE Futures Exchange, the news of the launch of the new cryptocurrency index comes after a strategic partnership between CBOE and CoinRoutes. Company that will be in charge of providing real-time data on the price of different crypto assets.
The launch of this index will take place in three phases. The first phase during the first quarter of 2021 will provide CBOE users access to the historical price data of cryptocurrencies. Subsequently, data will be shown in real time to investors. To end with the launch of its own cryptoassets index in the second quarter of next year.
This is not the first time that CBOE has bet on cryptocurrencies. Well, just a year ago, the company stopped offering Bitcoin futures transactions. The cryptocurrency index is therefore the second attempt by the company to enter the world of crypto assets.
Initially, the CBOE index will only include the most important cryptocurrencies in the world. Focusing on those with a high market capitalization such as Ethereum or Bitcoin, leaving the door open for further expansion.