Spread betting and Contracts for Difference provider, CMC Markets is this week rolling out to its customers the ability to spread bet and trade CFDs on three new cryptocurrency indices.
Following on from their introduction of 7 new cryptocurrency CFDs in April, the new indices are bespoke to CMC Markets. Their creation and management in-house gives the company full control over composition and absolute transparency in terms of pricing. Each index is made up of a different range of ‘major’ and ‘emerging’ coins. Clients are able to gain economic exposure to a wide range of cryptocurrencies in a cost-effective manner, from a single transaction.
Crypto index spreads will also typically be tighter than those of the individual underlying coins.
David Fineberg, Deputy Chief Executive Officer, commented: “Cryptocurrencies are moving back into focus for many traders, given the price action seen in the first few months of the year. These new indices allow CMC Markets’ clients to gain exposure to a bundle of different coins, while doing this as a single transaction means order minimums and trading costs are also kept low. Our proprietary Next Generation trading platform ensures that we can easily cater to client demand with innovative products like this and will continue to ensure we are offering access to instruments which are most appealing for today’s trading community.”
CMC Markets’ Major Crypto Index will include bitcoin, ripple, bitcoin cash, ethereum and litecoin. The Emerging Crypto Index is based on dash, EOS, monero, NEO, stellar lumens, cardano and TRON. A third index, the All Crypto Index, combines all of the above constituents and uses a bespoke weighting methodology to avoid dominance by any one coin.