US derivatives marketplace operator CME Group and British digital asset trading service Crypto Facilities announced today that they had launched an Ethereum (ETH) reference rate and a real-time Ethereum-dollar index.
The Chicago-based company said that both products would be calculated by Crypto Facilities and would be based on transactions and order book activity from two major cryptocurrency exchange – Kraken and Bitstamp. The ‘CME CF Ether-Dollar Reference Rate’ will provide a daily benchmark price in U.S. dollars, while the ‘CME CF Ether-Dollar Real Time Index’ will enable users to access to a real-time Ethereum price in US dollars. According to the announcement, the reference rates are now available on CME Group and Crypto Facilities websites and will be distributed on the CME Group Market Data Platform from June 4.
“The Ether Reference Rate and Real Time Index are designed to meet the evolving needs of this marketplace," Tim McCourt, managing director and global head of equity products and alternative investments at CME, said in a statement. He also described the move as “a key development for users of Ethereum”.
Meanwhile, the chief executive officer of Crypto Facilities, Timo Schlaefer, highlighted the “incredible adoption and growth” Ethereum experienced in 2017. “We are excited to be contributing to the strong community that has developed around the Ethereum network by providing a reliable reference rate and real-time Ether-Dollar price,” he added.
Today’s announcement comes just a few days after Crypto Facilities revealed that it was launching Ethereum futures. The company also provides the reference rate used for CME’s Bitcoin futures contracts, which were launched in December.
In today’s trading, the Ethereum price stood at $727.69, as of 16:27 BST. The digital currency has gained nearly 1% in the past 24 hours, according to data from cryptocurrency tracker Coinmarketcap.
For further information on how to buy and trade Ethereum, see our comprehensive Ethereum guide.