CoinDesk Indices (CDI) has recently entered an intriguing collaboration with ICE Futures Singapore. The result of this partnership is a rebranding of the exchange’s bitcoin futures contracts, now aptly known as CoinDesk Bitcoin Futures contracts (BMC). This information came directly from a recent press release.
The BMC is set to use the CoinDesk Bitcoin Price Index (XBX) for its monthly contact settlement according to the press release. It’s interesting to note that CDI has maintained and operated XBX since 2014. Hence, it has built a reputation as a reliable benchmark for approximately $17 billion worth of assets managed under various investment vehicles. This puts into context the scale and potential of the collaboration between CDI and ICE Futures Singapore.
While the markets are likely to see this collaboration as a positive step, it’s worth remembering that collaborations between such entities come with their own caveats. For instance, relying on one index could potentially lead to a skewed perspective on the value of the bitcoin futures contracts.
On the brighter side, such alliances might foster a more robust and dynamic market environment. Collaborations like this create opportunities for the various stakeholders in this market to adapt to the rapidly evolving crypto landscape. Moreover, since CDI is extending its services into the Asia-Pacific region through this collaborative effort, it promises to bring along its well-recognized benchmarks and solutions for the benefits of marketplace participants in that region.
Andy Baehr, managing director at CoinDesk Indices shed light on this development by saying, “This move underscores CDI’s commitment to serving global markets and offering world-class solutions to marketplace participants.” A bold statement that demonstrates CDI’s unwavering commitment to addressing the diverse needs of different market participants, by servicing global markets and creating world-class solutions.
In conclusion, the collaborative relaunch of bitcoin futures contracts between CDI and ICE Futures Singapore encompasses an exciting meld of significant developments and potential challenges. It promises the delivery of world-class solutions that are set to influence digital investment behaviours, while the dependencies created may impact market perspectives. As CoinDesk carries forth its mission through this collaboration, the markets eagerly anticipate the shape it will take. Stay tuned.
Source: Coindesk
