Cboe Plans to Launch Cryptocurrency Indexes!

[Em00n01]

Cboe Plans to Launch Cryptocurrency Indexes in Q2 2021
https://www.coindesk.com/cboe-cryptocurrency-indices
I think this is a very bulish news!!

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[figmentofmyass]

Cboe Plans to Launch Cryptocurrency Indexes in Q2 2021

https://www.coindesk.com/cboe-cryptocurrency-indices

I think this is a very bulish news!!

yet another step towards institutions taking over the market.

up to 10 coins to start---this looks bullish for altcoins too.

cboe isn't the only one either. S&P (of the S&P500 and dow jones indices) also announced plans for launching crypto indices earlier this month. https://www.prnewswire.com/news-releases/sp-dow-jones-indices-builds-crypto-indexing-capabilities-with-lukka-301185622.html

[el kaka22]

Indexes are not really something I favor, they are usually taking too many things and turning them into baskets and that was one of the main problems of 2008 crisis for example. Obviously they put everything into one basket that had bad things labeled as good things, which was the main problem and not the putting into one basket part, but it is still not great idea and could be used for bad purposes.

If you put top 10 coin into a basket for example and sell that, how do you know if 11th coin will not pass that? I never really liked index funds, they were always too scary and too risky for me while being zero risk as well, the fact that it pays so little (for stock market) while also being so risky to me makes it totally worthless. Maybe this will be different, we have to wait and see how they will do it and if they do it well enough maybe even I would like it.

[avikz]

Cboe Plans to Launch Cryptocurrency Indexes in Q2 2021

https://www.coindesk.com/cboe-cryptocurrency-indices

I think this is a very bulish news!!

Not something to really cheer about! It won't help the crypto market in any way because no liquidity will flow over there. Also if CBOE launches a crypto index fund, that will simply help CBOE to make money without actually getting into the cryptocurrency market. All will be price linked but no actual crypto trade will happen! So I personally am not in favor of such index or index funds as it is of no use to crypto traders or general crypto users. It is just a tool for corporates to make money out of thin air!

[masterzino]

Cboe Plans to Launch Cryptocurrency Indexes in Q2 2021

https://www.coindesk.com/cboe-cryptocurrency-indices

I think this is a very bulish news!!

Not something to really cheer about! It won't help the crypto market in any way because no liquidity will flow over there. Also if CBOE launches a crypto index fund, that will simply help CBOE to make money without actually getting into the cryptocurrency market. All will be price linked but no actual crypto trade will happen! So I personally am not in favor of such index or index funds as it is of no use to crypto traders or general crypto users. It is just a tool for corporates to make money out of thin air!

It's true that this will not bring liquidity. But it will bring more institutions players and this could bring a longer bullish trend.

The other positivity is the attention from more conservative players and media.

[figmentofmyass]

Indexes are not really something I favor, they are usually taking too many things and turning them into baskets and that was one of the main problems of 2008 crisis for example. Obviously they put everything into one basket that had bad things labeled as good things, which was the main problem and not the putting into one basket part, but it is still not great idea and could be used for bad purposes.

you're mixing up two different things IMO.

an index is just a benchmark that tracks the price performance of a basket of assets. when one composite asset rises, the index rises. when one falls, the index falls. that's all. ETFs and futures markets are then set up to track the benchmarks (like the dow jones industrial average) so that people can trade them on public regulated markets.

what happened in the housing crisis was that high risk mortgages were packaged into securities and then privately sold to other banks and institutional investors. when the housing market crashed, those mortgage-backed securities became worthless. banks who were heavily exposed to these toxic assets became insolvent.

this is very different from something like the dow jones industrial average, which just tells us what the stock prices of the top 30 companies are doing.

[sunsilk]

It's true that this will not bring liquidity. But it will bring more institutions players and this could bring a longer bullish trend.

The other positivity is the attention from more conservative players and media.

It could bring bullish trend in the sense that the "institutions" are in bitcoin and cryptocurrencies but with the actual trading, that doesn't really contribute to the whole market. I agree that it will bring positivity and there's one the same that I can compare to this;

And that's the news about PayPal allowing their users to buy bitcoin on their platform but you don't actually buy it. Although it's like that, the news brought positivity to the whole crypto market and added help to the bullish trend that we've got.

[Davian144]

Cboe Plans to Launch Cryptocurrency Indexes in Q2 2021

https://www.coindesk.com/cboe-cryptocurrency-indices

I think this is a very bulish news!!

How come the news can be so harsh for crypto? doesn't that look really good for the crypto space next year? because if this launch can have a good effect on crypto, of course it will be very good for everyone.

[Hydrogen]

Politics associated with coins being listed on exchanges could transfer over to asset listings on indexes.

Being listed on an index is free publicity and advertising, its also an endorsement. It lends credibility to listed assets, over assets that are not.

This opens a door to forms of profiteering, which represent a conflict of interest, in terms of coins being known to spend money in exchange for being listed.

It also presents a form of control and regulation where he who controls the indexes decides which assets are listed (endorsed) and which are not.

I would prefer a world without indexes, rather than a world with them.

I disagree with privacy coins being delisted from exchanges, when they weren't breaking laws, and the form of endorsement/control it represents.

[exstasie]

Politics associated with coins being listed on exchanges could transfer over to asset listings on indexes.

Being listed on an index is free publicity and advertising, its also an endorsement. It lends credibility to listed assets, over assets that are not.

This opens a door to forms of profiteering, which represent a conflict of interest, in terms of coins being known to spend money in exchange for being listed.

It's a quid pro quo. "You scratch my back, I scratch yours." The New York Stock Exchange charges listing fees just the same as Binance does. https://cointelegraph.com/news/not-a-fee-but-long-term-payment-how-crypto-exchanges-list-tokens

It also presents a form of control and regulation where he who controls the indexes decides which assets are listed (endorsed) and which are not.

I would expect an element of that, sure, but I think market capitalization will be the dominant factor. It's the very largest coins that are going to comprise their index.

I would prefer a world without indexes, rather than a world with them.

I've got mixed feelings about that. People who pick stocks usually underperform indices like the S&P 500. I think the same thinking applies here. The average, unsophisticated investor should have some options to bet on the crypto market as a whole, rather than being forced to pick the right coins.

[avikz]

Cboe Plans to Launch Cryptocurrency Indexes in Q2 2021
https://www.coindesk.com/cboe-cryptocurrency-indices
I think this is a very bulish news!!

CBOE is an options exchange and they don't usually deal in physical things! That means, you can just buy/sell based on the price of a commodity but can't actually own that commodity or take delivery of them! So in that case, I don't think the "Institutional takeover" argument is valid here! These kind of indexes are made for such people or institutions who wants to make money from any commodity without actually owning them! It's just a gambling game without the movement of physical assets.

So I personally don't think it is a cheerful news in any way! No liquidity will flow into the market. Yes, in terms of reputation, it may provide some more visibility to cryptos but nothing else!

[el kaka22]

an index is just a benchmark that tracks the price performance of a basket of assets. when one composite asset rises, the index rises. when one falls, the index falls. that's all. ETFs and futures markets are then set up to track the benchmarks (like the dow jones industrial average) so that people can trade them on public regulated markets.

what happened in the housing crisis was that high risk mortgages were packaged into securities and then privately sold to other banks and institutional investors. when the housing market crashed, those mortgage-backed securities became worthless. banks who were heavily exposed to these toxic assets became insolvent.

this is very different from something like the dow jones industrial average, which just tells us what the stock prices of the top 30 companies are doing.

The idea of "putting everything into one basket" is similar in both of them. Yes their names and how they were done are different, in one of them you put let's say top 10 cryptos in one basket, same would be having 10 companies stocks into one basket, which is not in any way similar to real problem where mortgages were put into one basket, but the idea of "putting all of the into one thing" is still the same.

This is why I do not think it will work, no matter how different you think 2008 was, it was still due to putting everything into one thing, it could be mortgages, it could be stocks, it could be crypto doesn't matter what we are talking about, and index is about the same thing, if I invest into bitcoin I will feel better about it, if I invest into top 20 coin index, I wouldn't feel that safe, market could crash and bitcoin could survive, but I would still lose money because alts went down. Or SEC could just attack the basket alone, while coins are safe and going up, you could lose money because index is investigated?

[wxa7115]

Indexes are not really something I favor, they are usually taking too many things and turning them into baskets and that was one of the main problems of 2008 crisis for example. Obviously they put everything into one basket that had bad things labeled as good things, which was the main problem and not the putting into one basket part, but it is still not great idea and could be used for bad purposes.

If you put top 10 coin into a basket for example and sell that, how do you know if 11th coin will not pass that? I never really liked index funds, they were always too scary and too risky for me while being zero risk as well, the fact that it pays so little (for stock market) while also being so risky to me makes it totally worthless. Maybe this will be different, we have to wait and see how they will do it and if they do it well enough maybe even I would like it.

That is a weakness of indexes that it is never going to go away, if they could they will buy every single stock in proportion to weight that stock has in the market, but since that is not possible they need to put some kind of limit but the weakness will remain, just think about it if indexes came to the market earlier and they bought the 10 top coins in the market they could have been involved with bitconnect.

Will they buy stable coins despite being nothing but a digital representation of the dollar? Will they buy XRP despite the problems is facing with the SEC? I just hope they actually take the time to look at the coins and do not buy every coin blindly or those indexes will present problems very quickly.

[RealMalatesta]

-snip-

That is a weakness of indexes that it is never going to go away, if they could they will buy every single stock in proportion to weight that stock has in the market, but since that is not possible they need to put some kind of limit but the weakness will remain, just think about it if indexes came to the market earlier and they bought the 10 top coins in the market they could have been involved with bitconnect.

Will they buy stable coins despite being nothing but a digital representation of the dollar? Will they buy XRP despite the problems is facing with the SEC? I just hope they actually take the time to look at the coins and do not buy every coin blindly or those indexes will present problems very quickly.

That is the problem with indexes, you can't omit and add according to your belief. You can make a case for each and every single coin to be either added or removed and that makes indexes either inclusive to everyone or horrible to everyone.

I personally would have an index adding all the top coins, omitting, usdt, xrp, bch and bsv because I do not believe in those coins, I can make a case for each of them as well. I would say USDT is just a stablecoin and it will not go up in value, it is just dollars, I could say XRP is managed by Ripple which is a company that is sued, they make it centralized and I do not want centralized, I could say BCH is mainly managed by miners, specially miners with agendas, so it is risky to put your trust into a miner group, I would say BSV is total BS in itself only created to help the ego of a narcissistic maniac. So, it is really hard to make an index that would make everyone happy.

[Mauser]

Cboe Plans to Launch Cryptocurrency Indexes in Q2 2021
https://www.coindesk.com/cboe-cryptocurrency-indices
I think this is a very bulish news!!

This is great news, this is just going to increase demand for crypto currencies. Also once we have good indices with baskets of alt coins the demand for financial assets on these alt coins will also increase.