Index Bakery enables lower-cost index products for ETF and ETP issuers

Competition in the ETF and ETP market is increasingly driven by cost efficiency. With a new infrastructure for the calculation and distribution of financial indices, Index Bakery enables issuers to launch index-based products more efficiently and at lower cost. Index Bakery describes its platform as technology-driven, fast, flexible, and built for modern markets, helping issuers shorten the path from index concept to live calculation without compromising institutional standards.

CMC Markets provides an early example and is the first provider to offer leveraged products across a broad range of crypto underlyings, giving investors access far beyond the largest and most established digital assets. In addition, CMC Markets has launched more than 20 new crypto ETPs based on Bitcoin, Ethereum, Solana, XRP, and other digital assets with a 0% management fee. The efficiency gains from the new infrastructure are therefore passed directly on to investors. This positioning as a cost-efficient provider is consistent with CMC Markets' broader market strategy, which also focuses on 0% models across other product segments.

"Lower infrastructure costs will significantly shape the future of index-based investment products."

Richard Freeman, Head of CMC Markets Securities

"Working with Index Bakery allows us to bring new products to market faster and more efficiently," said Richard Freeman, Head of CMC Markets Securities.

The team behind Index Bakery brings extensive experience in institutional index infrastructure. According to the company, it was founded by industry veterans from major financial institutions and combines deep knowledge of traditional market infrastructure with modern technology.

The team has independently validated existing index solutions, setting new standards for transparency, data integrity, and efficient, consistent methodology implementation, creating the foundation for faster product development and significantly lower costs.

This experience now feeds into a new generation of lean and scalable infrastructure for ETF and ETP issuers. According to the company, the platform automates the full indexing lifecycle from backtesting and design to daily calculation and distribution, follows an API-first architecture, and provides full audit trails.

In the rapidly growing digital asset market, providers face increasing pressure to combine institutional-grade quality with competitive pricing. At the same time, investors are demanding transparent and cost-efficient investment solutions. Index Bakery also states that its platform is built to support cross-asset and crypto use cases.

"We see a clear shift toward more efficient product structures."

Alexander Hinterding, Managing Director of Index Bakery

"Our goal is to provide the technological foundation for the next generation of index products," said Alexander Hinterding, Managing Director of Index Bakery.

The first products are already trading on exchange. Additional partnerships and index-based products are currently in development.