Binance launches its index to track the performance of the top 10 cryptocurrencies

Binance has unveiled an index based on the top 10 cryptocurrencies in the market. From November on this new product it will be possible to create a DCA, similar in principle to an ETF.

Binance Unveils Its Top 10 Cryptocurrency Index

With the new CMC Top 10 Equal-Weighted Index, Binance now tracks the performance of the top 10 most capitalized cryptocurrencies in the market.

This new index is called equally weighted, which means that each of its constituent assets has the same value in the total price. Moreover, each of its components weighs 10% of the price. At the time of this writing, CMC Top 10 is worth around $1,000 and includes the following cryptocurrencies:

Composition of the Top 10 Equally Weighted Indices Binance CMC

The constitution of this tracker must evolve along with the market, and it requires certain conditions to be part of it. As a result, fiat-backed or non-fiat-backed stablecoins, as well as “same-coins” such as DOGE or SHIBA, are not suitable. In addition, the asset must be listed for at least 30 days on Binance and CoinMarketCap.

In a sense, the CMC Top 10 index uses the principle of an exchange-traded fund (ETF), although it differs in its technical and legal design. Its composition will be rebalanced on the last Monday of each month. In addition, its quote date starts from September 22, and the price is updated every minute.

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A simple tool for investors

From November, Binance will allow you to directly invest in this index through its “Auto-Invest” product. The latter allows you to set up an investment strategy based on dollar value averaging (DCA) directly on Binance. Thus, it is possible to buy cryptocurrencies at scheduled intervals, while they have BUSD or USDT stablecoins in their account.

Therefore, this product, in combination with this new index, can represent a suitable investment vehicle for a person who wants to diversify their portfolio in a simple and automatic way.

In addition, Binance does not plan to stop there and has already announced that new indices will come from 2023, without specifying their composition yet.

In addition to Auto-Invest, this and subsequent indexes will be integrated with other products of the exchange, although Binance has not yet specified which ones. Thus, the platform continues its policy of offering a variety of solutions, allowing everyone to invest in cryptocurrencies in a simple and affordable way.

👉 Also in the news – Binance is launching a $500M initiative to support Bitcoin (BTC) miners.

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Source: Binance

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