S&P Global said it plans to create indices for other popular cryptocurrency coins later in the year.
S&P Dow Jones Indices has launched three new cryptocurrency indices, further bringing the digital currencies into the mainstream of the financial world.
For now, S&P Dow Jones has launched three cryptocurrency indices:
- S&P Bitcoin Index, measuring the performance of bitcoin.
- S&P Ethereum Index, measuring the performance of ethereum.
- S&P Cryptocurrency MegaCap Index, measuring the performance of both Bitcoin and Ethereum digital assets.
S&P Global said that it plans to expand its digital asset index series, potentially adding new indices for other popular cryptocurrency coins later in the year.
The index provider first announced it intention to launch cryptocurrency indices last December. At the time, it suggested it would cover more than 550 of the most popular coins.
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According to S&P Global, as the market for cryptocurrency assets is continuing to grow investors are increasingly in need of benchmarking and indices focused on cryptocurrency assets. The indices use pricing data from Lukka, a crypto software and data provider.
“Traditional financial markets and digital assets are no longer mutually exclusive markets,” said Peter Roffman, global head of innovation and strategy at S&P Dow Jones Indices. “As cryptocurrency becomes more mainstream, investors now have access to reliable and transparent benchmarks backed by institutional quality pricing data. We look forward to further expanding our new family of Digital Market Indices and bringing much needed transparency to this exciting market.”
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Bitcoin, alongside several other cryptocurrencies, has seen a surge in price over the past year. The new S&P Bitcoin Index shows it providing a 516% return in US dollar terms over the past year. Meanwhile, the S&P Ethereum Index shows a 1,569.03% return over the past year. The S&P Cryptocurrency MegaCap Index which tracks the price of both coins shows a one-year return of 646.50%.
The new indices suggest another potential landmark in bitcoin and other cryptocurrencies gaining mainstream credibility. Over the past year, there has been more professional interest in the digital asset, notably with investment trust Ruffer adding bitcoin to its portfolio in late 2020.
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