Amid the growing popularity of cryptocurrencies, S&P Dow Jones Indices has launched a new series of digital asset benchmarks — the S&P Digital Market Indices, which measure the performance of digital assets listed on “recognized open cryptocurrency exchanges,” the index shop says.
The series includes the S&P Bitcoin Index, S&P Ethereum Index and S&P Cryptocurrency MegaCap Index.
Later this year, S&P Dow Jones Indices plans to expand the index series to include additional coins and broader-based indexes, such as large-cap and broad market benchmarks.
“Investor demand for benchmarking and index-based solutions based on crypto and blockchain assets is more essential than ever,” according to a statement issued by the firm on Tuesday.
“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, in a statement. “As cryptocurrency becomes more mainstream, investors now have access to reliable and transparent benchmarks backed by institutional quality pricing data. “
S&P Dow Jones Indices said the new indexes will not only help investors access the new asset class but also will mitigate some of the risks associated with “this traditionally speculative market.”
The indexes use pricing data from crypto software and data provider Lukka to determine the eligibility universe and pricing of individual constituents. S&P DJI’s Index Committee administers the indexes.
S&P DJI launched several customized cryptocurrency indexing products at the end of last year. In the first quarter of 2021, IDX Insights introduced a series of risk-managed custom cryptocurrency indices — the first based on S&P DJI’s custom cryptocurrency indexing solutions.