CME Group has introduced two new indexes tracking major cryptocurrencies excluding bitcoin and ether.

On Aug. 31, blockchain media outlet The Defiant reported that CME formally launched two multi-asset cryptocurrency benchmark indexes.

The new indexes are the CME CF Emerging Crypto Index and the CME CF Crypto Market Index. The emerging crypto index tracks 10 major cryptocurrencies excluding bitcoin and ether: BNB, XRP, SOL, HYPE, LINK, XLM, SUI, UNI, AVAX and AAVE. The crypto market index comprises 12 assets, adding bitcoin and ether to those tokens.

Real-time versions of both indexes are calculated every second, 24 hours a day. Settlement versions are published once a day at 4 p.m., based on London, New York, and Singapore-Hong Kong time, respectively.

The indexes use a free-float market-cap weighting that considers circulating supply rather than simple market value. CME said the emerging crypto index was designed to track the 10 largest eligible assets excluding bitcoin and ether. The greater the value of tokens that can actually be traded in the market, the higher their weight in the index.

Constituents and weightings are rebalanced on the first business day of June and December each year. The same semiannual review schedule applies to the crypto market index. The approach reflects changes in market conditions and inclusion criteria on a regular basis rather than simply tracking a fixed asset set.

In particular, the emerging crypto index applies relatively strict inclusion criteria. It requires custodial accessibility and excludes memecoins. It also assesses real-world protocol usage by using the relative weighting of total value locked and fully diluted market capitalisation. CME explained that the index was designed for use in investment products and can be used for passive fund replication and derivatives settlement.

The design also reflects links to exchange-traded product standards. Even if an asset does not meet general listing standards for crypto ETPs at major U.S. exchanges at the index launch, it can be included within a combined weight of up to 10 percent if it is expected to meet the requirements within 30 days. It must meet the standards in effect at the time of the subsequent regular review to remain included.

The launch extends CME's push to expand cryptocurrency indexes and derivatives. CME launched Nasdaq CME Cryptocurrency Index Futures in June, tracking a basket of large, liquid cryptocurrencies. The contract is cash-settled based on a separate settlement price index.

CF Benchmarks plans to provide licences to use the two newly launched indexes as underlying indexes for investment funds and derivatives. As a result, the indexes may be used in the design and settlement of a range of financial products beyond serving as market reference indicators.