Asia, with its booming markets and growing population of crypto-savvy people, is attracting new financial industry giants. The recent announcement by CME Group, the global leader in derivatives markets, of its intention to launch two APAC-specific benchmark rates for Bitcoin and Ethereum, marks a milestone in this expansion.
A logical expansion in the face of growing demand
With Robert Kiyosaki pricing Bitcoin at $100,000 and issuing gold and silver warnings, investors in Asia already seem to be fully aware of the growing importance of cryptocurrencies.
This launch is part of a desire to adapt the offer to the reality of the market. According to Giovanni Vicioso, Global Head of Crypto Products at CME Group, 37% of crypto transaction volumes of the group this year took place outside of American hours, including 11% from the Asia-Pacific region.
With the democratization of cryptocurrencies, more and more institutional investors are integrating bitcoin or Ethereum (Ether) into their portfolios or structured products such as ETFs. Providing benchmarks aligned with Asian time zones will allow these players to better hedge their risks.
Reference rates up to world standards
CF Benchmarks, a stalwart in the provision of benchmarks for cryptocurrencies, is working closely with the CME Group for this ambitious project.
Their goal is clear: offer regulated financial products to Asian marketswhile maintaining the rigorous standards that have built the trust of investors and institutions in the West.
Sui Chung, CEO of CF Benchmarksinsists that these new indices will be calculated and administered according to the same demanding criteria as their counterparts in London and New York.
This assurance of the quality and reliability of the new reference rates reassures market players, while strengthening general confidence in financial products related to cryptocurrencies.
Hopefully, these advancements lead to a smoother and smoother adoption into the global economy and commerce. With the emergence of decentralized payments, the range of applications continues to expand.
It is now crucial to channel the growing enthusiasm of the public to reveal the full scope of this avant-garde technology. By introducing these new indices, CME Group and CF Benchmarks solidify their commitment to this transition. The crypto revolution continues to accelerate as the SEC plays for time with bitcoin ETFs.
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