US-based crypto exchange Coinbase just launched a new benchmark index for tracking the digital assets market.
In a statement, the publicly-listed firm says the Coinbase 50 Index (COIN50) is a regulated benchmark representing the 50 largest crypto assets on its platform that meet the fundamental criteria for token economics, blockchain architecture and security.
To qualify for entrance into the index, the assets must not be pegged to other digital assets, must have most of their token supply in public circulation and must not have any known security vulnerability.
“The Coinbase 50 Index, rebalanced quarterly, is a market cap-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 sets the foundation for our indices to evolve alongside the industry, ensuring they provide critical price discovery and remain a comprehensive benchmark for the cryptoeconomy.”
Eligible institutional and retail users can now trade the index via a COIN50 perpetual futures contract on Coinbase International Exchange and Coinbase Advanced albeit the contract is not available to traders based in the US, UK and Canada.
The exchange says it is exploring more ways to provide traders exposure to the index.
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