Last year, the index provider announced that it would launch cryptocurrency indices in 2021 with the coverage of up to 550 cryptocurrencies.
Cryptocurrencies are here to stay, and to better transparency to this emerging market, S&P, Dow Jones has started three new indices. These indices will help measure the performances of a group of crypto assets that are listed on recognized and open exchanges.
The indices will cover up to 550 digital tokens.
Livemint.com reports that S&P Dow Jones will launch three indices designed to measure the performance of cryptocurrencies. The indices were long in the making and were promised last year by the index provider. The index will cover up to 550 digital tokens.
The S&P indices will compete with Bloomberg crypto indices, which details the big digital tokens traded in the US. The latest move by S&P is one more indicator that cryptocurrencies are gaining wider acceptance, and major players like Tesla, MasterCard, PayPal, MicroStrategy, and Apple have already adopted BTC in their ecosystem.
Nischal Shetty, chief executive officer (CEO), WazirX, told Livemint that the latest move by S&P would provide the investors with better exposure to crypto and its potential. It will encourage the participation of traditional institutions in the cryptocurrency business.
Two of the biggest cryptocurrencies, BTC and ETH, will be assessed by the S&P Bitcoin (SPBTC) and S&P Ethereum (SPETH) indices, the smaller players, will be evaluated by S&P Cryptocurrency MegaCap (SPCMC). The latter track the digital tokens by their market cap.
Data provided by blockchain data provider Lukka
Livemint.com quoted Sumit Gupta, co-founder, and CEO, CoinDCX, who felt that the move by S&P would improve the credibility of the emerging crypto market. Livemint added that the S&P cryptocurrency values and references are being provided by US blockchain data provider Lukka, backed by the parent company of S&P Dow Jones—S&P Global.
