Key Takeaways
- • Intercontinental Exchange (NYSE: ICE) launched cryptocurrency futures contracts based on seven CoinDesk Indices, including the flagship CoinDesk 20 and CoinDesk 5 Indices, according to a Business Wire press release.
- • The seven contracts are U.S. dollar denominated and cash-settled, covering ICE CoinDesk 20, CoinDesk 5, Bitcoin, Ether, Solana, XRP and BNB futures.
- • CoinDesk indices tied to the underlying cryptocurrencies have over $40 billion in assets under management, and the CoinDesk 20 captures more than 90% of the digital asset market.
- • ICE plans to launch One Month CoinDesk Overnight Rates (CDOR) USDC futures, subject to regulatory review.
Summary
The release states that more than $40 billion in assets under management are tied to CoinDesk Indices tracking cryptocurrencies including Bitcoin, Ether and Solana. The flagship CoinDesk 20 Index uses a capped market capitalization-weighted methodology across digital assets including Bitcoin, BNB, Ethereum and Solana. According to the release, the index captures over 90% of the digital asset market, and the total volume of linked products is worth over $16 billion. The CoinDesk 5 Index is market capitalization-weighted and tracks the five largest constituents of the CoinDesk 20.
Jennifer Ilkiw, President of ICE Futures U.S., said the launch "expands ICE's existing relationship with CoinDesk and will bring further transparency to the digital asset market." David LaValle, President of CoinDesk Data and Indices, said the partnership "advances that mission into regulated futures markets" and expands the reach of CoinDesk's benchmarks.
Separately, ICE plans to launch One Month CoinDesk Overnight Rates (CDOR) USDC futures based on CoinDesk's Overnight Rate, subject to regulatory review. The release describes CDOR as daily benchmarks reflecting the annualized effective interest rate paid by borrowers in decentralized finance markets, structurally similar to traditional overnight rates such as SOFR or \u20acSTR.
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