Singapore Exchange (SGX) is creating Bitcoin and Ethereum index, aims to become Asia’s benchmark
Singapore Exchange Ltd. is creating two new cryptocurrency indexes with the goal of setting the pricing standard for Bitcoin and Ethereum in Asia, according to Bloomberg on September 3.
SGX’s iEdge Bitcoin Index and iEdge Ethereum Index will use inputs from exchanges determined by CryptoCompare, according to the methodology. SGX is the index sponsor and administrator for these indices. Cryptocompare is the calculation agent.
The iEdge Cryptocurrency Index family is a group of indices estimating the aggregated price development of a reference Cryptocurrency in comparison to the USD. These can be used by traders and investors to calculate their portfolio value more realistically by using VWAP prices that are averagedover multiple exchanges.
Cryptocurrencies such as Bitcoin and Ethereum are traded in various markets against multiple currencies including fiat currencies (USD, JPY, GBP, etc) or other cryptocurrencies. Depending on the market type (exchange or OTC), liquidity level, trading volume, transaction fees, and many other factors, coins can trade at different prices across different exchanges.
“It’s important to bring transparency to this segment of the market,” Karaban said in an interview. In addition, regulators in Asia are more receptive to creation of derivatives products if they’re on regulated exchanges, SGX’s Head of Index Services Simon Karaban said.
Venues used in pricing as of the launch are itBit, Coinbase, Kraken, Bitstamp, Liquid, Bitfinex, OKCoin, LMAX and Cex.io, according to SGX.
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