The Block and Wintermute Introduce GMCI 30: A Regulated Crypto Market Benchmark

  • The Block has collaborated with Wintermute to launch GMCI, featuring the GMCI 30 index, which tracks the top 30 cryptocurrencies by market cap, emphasizing transparency and compliance with regulatory standards.
  • The GMCI indexes, starting with GMCI 30, aim to establish a reliable benchmark for the crypto market, aiding in the creation of financial products and investment strategies.

The Block and Wintermute Launch GMCI to Provide Standardized Crypto Indexes

The crypto asset management landscape is witnessing a significant development with the strategic partnership of The Block, a leading digital asset information service, and Wintermute, a prominent liquidity provider in the digital asset space. Together, they have unveiled the Global Markets Crypto Intelligence (GMCI), a move aimed at transforming the index product spectrum in cryptocurrency asset management.

As the flagship of this initiative, GMCI has introduced the GMCI 30 index, a tool purpose-built to track the performance of the top 30 cryptocurrencies by market capitalization. This index distinguishes itself from existing benchmarks by setting strict inclusion criteria, promoting both transparency and adherence to regulatory standards. These criteria include ensuring cryptocurrencies are traded on vetted centralized exchanges, supported by recognized custodial services, and compliant with U.S. Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.

The GMCI 30 index aims to inject a measure of reliability and clarity into the often volatile and opaque world of cryptocurrency investment. With a structure that caps the maximum weighting of any individual asset at 25% of the total index value, it addresses concentration risks and seeks to offer a more balanced representation of the market landscape.

Behind the scenes, The Block's Industry Research team has been crucial to the development of the GMCI 30. The experts have carefully curated a token classification taxonomy, conducted thorough diligence on various data sources, and engineered sophisticated methodologies for the calculation of the index. Their dedication to creating a reliable benchmark echoes within every aspect of the GMCI 30's foundation.

The ambitions for GMCI go beyond the debut of GMCI 30. There are plans to expand the family of indexes to include sector-specific measures, each tailored to capture the nuanced dynamics of different digital asset categories. The strategy moving forward involves allowing the crafting of diverse financial products rooted in GMCI's indexes, while uncompromising on the principles of integrity and investability that underscore their creation.

For investors and market actors, the development of the GMCI and GMCI 30 index represents a significant evolution in tools available for navigating the crypto space. With an emphasis on high standards and regulatory compliance, the GMCI could very well set a new benchmark for trustworthy and insightful crypto market indices.


Sources:

  1. The Block
  2. Wintermute
  3. U.S. KYC and AML Regulations

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