In a further improvement marking increasing acceptance of cryptocurrencies in the mainstream monetary world, index provider S&P Dow Jones Indices on Tuesday announced the official launch of its new series of cryptocurrency indices to measure the efficiency of digital assets listed on recognised open cryptocurrency exchanges. Bringing Bitcoin and Ethereum to Wall Street, S&P mentioned S&P Bitcoin Index (SPBTC) will track the efficiency of Bitcoin when S&P Ethereum Index (SPETH) will measure the efficiency of Bitcoin’s closest rival — Ethereum. Lastly, S&P Cryptocurrency MegaCap Index (SPCMC) will measure the efficiency of Bitcoin and Ethereum digital assets weighted by marketplace cap. Later in 2021, the S&P Digital Market Indices series will include things like other coins and broader-based indices such as massive cap and broad marketplace benchmarks.
Intended to bring transparency to the emerging crypto marketplace, S&P, in its FAQs for new indices, mentioned that its cryptocurrency pricing and reference information is supplied by Lukka – crypto software program and information provider — by way of its Lukka Prime and Lukka Reference Data solutions. It makes use of the Lukka Prime Fair Market Value finish-of-day cost taken at 4:00 p.m. EST (1.30 a.m. IST) for cryptocurrency index calculation. The Lukka Prime Fair Market Value Pricing makes use of a proprietary methodology to establish the principal exchange of every digital asset at any provided time, which in turn determines that asset’s fair marketplace worth, S&P mentioned in its FAQ. Lukka serves institutions, such as fund administrators and fund auditors that serve more than 160 active crypto funds at the moment.
Also study: Crypto marketplace cap doubles to eye-popping $2.3 trillion in 3 months as mainstream adoption gets nearer
As the crypto frenzy amongst investors grows, latters’ demand for benchmarking and index-based options based on crypto and blockchain assets has also gained significance. “Traditional financial markets and digital assets are no longer mutually exclusive markets…As cryptocurrency becomes more mainstream, investors now have access to reliable and transparent benchmarks backed by institutional quality pricing data,” Peter Roffman, Global Head of Innovation and Strategy, S&P Dow Jones Indices mentioned in a statement. S&P had launched customized cryptocurrency indexing options at the finish of 2020.
As of May 3, 2021, SPBTC stood at 7,678.36, SPETH at 29,405.14 and SPCMC at 5,895.79. In May 2018, Bloomberg along with digital asset management corporation Galaxy Digital Capital Management had launched the Bloomberg Galaxy Crypto Index (BGCI) to track the efficiency of USD-traded cryptocurrencies such as Bitcoin, Ethereum, Monero, Ripple, and so forth. S&P’s launch of crypto indices comes amid the general marketplace cap of cryptocurrencies touching the $2.3-trillion milestone briefly on Monday, doubling from $1.15 trillion as of February 5, 2021. Growing institutional adoption for Bitcoin specifically has been amongst the essential drivers for the crypto marketplace to obtain acceptance amongst organizations and nations.
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