New Benchmark Index to Track Entire Crypto Industry's Performance

Crypto businesses Wintermute and The Block have partnered to create GMCI, currently providing various crypto market indices.
Their first live index, GMCI 30, tracks the top 30 coins by market cap, simplifying performance observation for investors.
More indices, like the GMCI DeFi Index, are planned for the future.
The ultimate goal is for GMCI indices to be traded on the stock market like other ETFs.

The cryptosphere has continued its emergence as a legitimate financial industry, ticking off another major milestone last night. Amid the Securities and Exchange Commission’s spot Bitcoin ETF approval, the gap between traditional finance (TradFi) and decentralised finance (DeFi) has steadily narrowed. The industry has taken another step in this direction after liquidity provider Wintermute and information providers The Block partnered up to create Global Markets Crypto Intelligence (GMCI).

1/ Crypto has a new benchmark 💯
Tracking the performance of the entire industry has just become incredibly simple.
Introducing GMCI — the index provider, crafting comprehensive digital assets indices. ↓ pic.twitter.com/UaC7Omshoe
— GMCI (@gmci_) February 12, 2024

Flagship Product GMCI 30 Released

The collaboration will provide a much needed boost to the blockchain sector, with the team’s primary goal to release various indices that track the crypto market. Think of how the S+P 500 follows an aggregate value of the United State’s top 500 companies – that’s exactly what GMCI intends to mirror.

The first GMCI index, the GMCI 30, went live yesterday. The premise of this market is simple – to track the performance of the top 30 coins by market capitalisation. This means heavy-hitters like Bitcoin and Ethereum are (barring catastrophe) permanently represented, while the coins sitting at 25-30 will likely change quite often. The index caps the top asset’s weighting at 25%, meaning that 75% of the GMCI 30’s value will typically be from assets other than BTC.

Source: The Block

The addition of a top 30 index is a massive coup for investors in the crypto world. To be fair, it was previously possible to observe performance on an overall market scale, or by doing the math yourself.

However, it is now much easier for traders to observe both short- and long-term performance for the upper echelon of the market at a glance.

More indices are on the way, with the next in line GMCI DeFi which will track the performance of Web3 coins like Ethereum and Chainlink.

Looking ahead even further, GMCI CO Maarten Botman has grand plans for the new venture:

The initial market strategy is to use the flagship index and allow third parties to build perpetual swap products and list them on leading futures exchanges. Eventually, GMCI has ambitions to trade as ETFs on regulated security exchanges.

Maarten Botman

Simply put, as the SEC backs off their hardline stance on ETFs, it’s only a matter of time before you can invest in an instrument like the GMCI 30.

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