TradeBlock is pleased to announce the launch of the ECX Index, an institutional-quality reference rate for the USD-denominated price of Ethereum Classic.
TradeBlock’s ECX index is designed to provide a robust reference for Ethereum Classic by applying many methodologies similar to TradeBlock’s XBX Index, which has been widely adopted by institutional bitcoin markets.
The ECX index is based on trading activity observed on the leading Ethereum Classic exchanges to provide a real-time rate. The ECX index maximizes the replicability of its value in the live spot markets by weighting exchange data based on the venue’s liquidity and automatically de-weighting anomalistic trading in real time.
As is the case with the XBX index, TradeBlock uses the framework defined by IOSCO’s Principles for Financial Benchmarks for the calculation methodology and governance protocols of its ECX index. The ECX index includes markets that are liquid in both the ETC/USD & ETC/XBT crosses, incorporating the XBX index rate to offer a consolidated ETC/USD reference rate.
After experiencing substantial growth with their Bitcoin Investment Trust (GBTC), Grayscale Investments filed with the SEC on Jan 20, 2017 to list it on the New York Stock Exchange, formally positioning their product as an ETF that will track bitcoin’s price and will use XBX index as its reference rate. Grayscale Investments has also recently announced the launch of their next digital currency investment product, the Ethereum (ETC) Investment Trust (EIT), which will use TradeBlock’s ECX as the reference rate to determine Net Asset Value.
Over the coming weeks, tools to track ECX performance and related information will be made available on the public sections of TradeBlock’s website. Please reach out with any comments or suggestions.