“It’s important to bring transparency to this segment of the market,” Karaban said in an interview. In addition, regulators in Asia are more receptive to creation of derivatives products if they’re on regulated exchanges, he said.
Venues used in pricing as of the launch are itBit, Coinbase, Kraken, Bitstamp, Liquid, Bitfinex, OKCoin, LMAX and Cex.io, according to SGX.
The methodology uses CryptoCompare’s due diligence, which gives bigger weightings to high-liquidity exchanges over low-liquidity counterparts. The price is calculated at the 4 p.m. close in Singapore and the exchange will switch to real-time values in about eight weeks, Karaban said. While crypto trading is available 24 hours a day, seven days a week on some venues, the SGX indexes will be calculated on weekdays only.
See also: Alexander Hamilton’s three lessons for stablecoins
Digital-asset tracker funds managed about US$4.5 billion ($6.13 billion) as of June, according to a statement from CryptoCompare on Tuesday. Asian fiat-crypto trading pairs now account for 43% of total global spot volumes.
