Intercontinental Exchange, Inc. (NYSE: ICE) has unveiled its latest product: cryptocurrency futures contracts based on seven CoinDesk indices. This new offering includes notable indices such as the CoinDesk 20 and CoinDesk 5.
Details of the New Futures Contracts
- ICE CoinDesk 20 Index Futures
- ICE CoinDesk 5 Index Futures
- ICE CoinDesk Bitcoin Futures
- ICE CoinDesk Ether Futures
- ICE CoinDesk Solana Futures
- ICE CoinDesk XRP Futures
- ICE CoinDesk BNB Futures
The newly launched contracts are cash-settled and denominated in U.S. dollars. They are designed to enhance transparency and provide reliable benchmarks in the fast-evolving digital asset market. Notably, over $40 billion in assets under management is linked to CoinDesk indices that track cryptocurrencies, including Bitcoin, Ethereum, and Solana.
Performance of CoinDesk Indices
The flagship CoinDesk 20 Index serves as a key performance indicator for digital assets. It employs a capped market capitalization-weighted approach, capturing over 90% of the digital asset market. The total volume of products associated with this index exceeds $16 billion.
CoinDesk 5 Index Overview
The CoinDesk 5 Index focuses on the five largest cryptocurrencies within the CoinDesk 20. This index is also market capitalization-weighted, reinforcing its role as a significant benchmark in the digital asset landscape.
Statements from Key Executives
Jennifer Ilkiw, President of ICE Futures U.S., expressed enthusiasm about the launch, stating, “The digital asset space is evolving rapidly. Our collaboration with CoinDesk will enhance the transparency of the market.”
David LaValle, President of CoinDesk Data and Indices, emphasized the importance of these indices, noting that their development aims to provide trusted benchmarks for the digital asset sector, now expanded into regulated futures markets.
Future Developments
ICE is also planning to introduce One Month CoinDesk Overnight Rates (CDOR) USDC futures, pending regulatory approval. These rates reflect the annualized effective interest rate in decentralized finance markets and are comparable to conventional overnight rates like SOFR or €STR.
