Binance Launches the Binance Equal-Weighted Index

Key Takeaways:

-Binance has announced the launch of its Index Series, CMC Top 10 Equal-Weighted Index is the first one of this series.

-Auto Invest will be one of the first ways to use this new index starting from November onwards.

Binance, the world's leading blockchain and cryptocurrency infrastructure provider, today announced the launch of a new series of crypto benchmarks, Binance CoinMarketCap (CMC) Index Series. The indices are designed to enable users to better monitor and evaluate the performance of the crypto market.

The indices will rely on pricing data from CoinMarketCap (CMC), the world’s most-referenced cryptocurrency data tracking site owned by Binance. With the introduction of the indices, Binance and CMC aim to give crypto users an easier way to automatically track and manage diversified digital asset portfolios.

The index series begins with the Binance CoinMarketCap (CMC) Top 10 Equal-Weighted Index, which tracks the performance of the top 10 cryptocurrencies by market capitalization. Each asset in the index is equally weighted, and the index is rebalanced on a monthly basis. 

Starting November 2022, index-backed products will become available to the Binance community via Auto-Invest, a feature under Binance Earn that allows users to automate cryptocurrency purchases on dollar-cost averaging (DCA) strategy.  This will allow users to acquire a diversified portfolio of individual digital assets with just one click.

In the future, users can expect to see the index series expand to include more digital assets in a diverse set of products. Potential indexing criteria could include top market-cap assets based on specific public chains and assets belonging to various Web3 sectors such as NFT, DeFi, Metaverse, and GameFi, among others. These different indices will be integrated with Auto-Invest as well, and more index-linked products will be offered throughout the Binance ecosystem. 

“When considering what drives us here at Binance, user-focused has always been at the forefront. We're excited to be the leading crypto player to bring index products to our industry, which will make tracking market fluctuations and keeping tabs on holdings much simpler and more efficient for a wider range of users. We will continue the innovation journey to accelerate the mass adoption of crypto," Frank Z, the Head of Binance Earn, said.