Ethereum Price Index Is in the Works

Efforts to develop an Ethereum price index are officially underway after a New York-based blockchain startup announced a new partnership with trueEx, an exchange for interest rate swaps.

trueEx Announces Launches Derivatives Platform for Crypto

On Monday, trueEx announced plans to launch a new derivatives platform designed specifically for cryptocurrency. The new platform will be called trueDigital and will list non-deliverable forward (NDF) contracts for crypto assets. The first NDF contract will be for bitcoin.

Sunil Hurani, the founder of trueDigital, issued the following statement:

“Institutional investors and commercial partners are ready for a regulated and liquid marketplace to gain exposure to and hedge these increasingly important digital currencies and commodities, but the marketplace is sorely lacking the necessary foundation, infrastructure and platforms that institutional investors have come to expect in other important markets.”

By entering the crypto market, trueEx has the opportunity to capitalize on one of the world’s fastest-growing asset classes. The platform offers a convenient option for institutional traders to access cryptocurrency using conventional trading instruments as opposed to online exchanges with digital wallets.

The trueEx marketplace is regulated by the Commodity Futures Trading Commission (CFTC). However, the first trueDigital contract for bitcoin is pending approval by the commodity regulator.

Last year, the regulator approved two applications from prominent exchanges CBOE and CME Group to list bitcoin futures.

Ethereum Reference Rate

TrueEx also announced a new partnership with New York-based ConsenSys to develop a target reference rate for Ethereum, the world’s second-largest digital asset by market cap.

According to a press release, the Ethereum reference rate will create the “infrastructure needed for the broad adoption of digital assets by the institutional community.”

A broadly recognized reference rate for ether will help investors more accurately track movements in the currency. Presently, ether prices are tracked on digital currency exchanges.

Like most digital assets, Ethereum has struggled to extend last year’s record-setting surge. However, the currency has been more resilient than its peers, with prices hovering around break-even for the year.

Ethereum is widely regarded as one of the most powerful blockchain solutions on the market, having emerged as the go-to platform for initial coin offerings (ICOs). The vast majority of successful token raises are launched on Ethereum, which ensures steady demand for ether tokens.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi