Cryptocurrencies are becoming mainstream as we talk. The S&P Dow Jones Indices has launched new benchmarks for both Bitcoin (BTC) and Ethereum (ETH). The new crypto indices are called S&P Digital Market Indices and they will report price data about the two largest cryptocurrencies in the world.
S&P Launches New Crypto Indices
Larger investors will now have more accurate data provided by the S&P through different cryptocurrency indices. These indices will report the price of Bitcoin and the price of Ethereum.
However, there will also be a third option for those users that want to follow the performance of both digital assets at the same time. This option is called Cryptocurrency MegaCap Index.
In order to share valuable data, the pricing information will be taken from the cryptocurrency data provider Lukka. However, there are many other providers in the market that could be checked by users.
In the future, S&P informed that it will be adding new virtual currencies to the indices. This would make it easier for larger investors to get access to valuable data and have a better idea of how cryptocurrencies operate.
The decision to launch these indices comes at a time in which the entire cryptocurrency market is reaching new highs in terms of market valuation. At the same time, Bitcoin continues moving higher as we speak. The largest virtual currency in the world has recently hit an all-time high above $63,000 and its price could continue moving higher in the future.
Institutional investors are also entering the crypto market. Companies such as Tesla, MassMutual, MicroStrategy or Square are purchasing Bitcoin. Most of them claim that this could be an insurance policy against fiat currencies. With the new S&P Indices, institutions will have more accurate and curated price data from the entire crypto market.
Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices stated:
“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.”
It is worth taking into consideration that the S&P Dow Jones Indices launched customized crypto indexing solutions in 2020. In this way, they are adding new products and services to their crypto line. Furthermore, they have also launched a series of risk-managed custom crypto indices.