S&P Dow Jones Indices Launches Cryptocurrency Index Series Including S&P Bitcoin Index

Rhea-AI Summary

S&P Dow Jones Indices has launched a new series of S&P Digital Market Indices to measure the performance of digital assets on recognized cryptocurrency exchanges. This includes the S&P Bitcoin Index, S&P Ethereum Index, and the S&P Cryptocurrency MegaCap Index. The indices will utilize pricing data from Lukka and are managed by S&P DJI's Index Committee. As the cryptocurrency market expands, these indices aim to provide reliable benchmarks for investors, enhancing transparency in this asset class.

Positive

• Launch of S&P Digital Market Indices enhances investor access to cryptocurrency benchmarks.
• Indices are backed by institutional quality pricing data from Lukka, increasing reliability.
• Potential to mitigate risks associated with cryptocurrency investments by providing transparent benchmarks.

Negative

• None.

NEW YORK, May 4, 2021 /PRNewswire/ -- S&P Dow Jones Indices (S&P DJI), the world's leading index provider, has officially launched its new series of digital asset benchmarks, the S&P Digital Market Indices. These new S&P-branded indices will measure the performance of digital assets listed on recognized open cryptocurrency exchanges.

At launch, the index series includes the following:

• S&P Bitcoin Index – measures the performance of Bitcoin.
• S&P Ethereum Index – measures the performance of Ethereum.
• S&P Cryptocurrency MegaCap Index – measures the performance of Bitcoin and Ethereum digital assets.

Later this year, the S&P Digital Market Indices series will include additional coins and broader-based indices such as large cap and broad market benchmarks.

The indices use pricing data from Lukka, a crypto software and data provider, to determine the eligibility universe and pricing of individual constituents. S&P DJI's Index Committee administers the indices.  S&P DJI first announced new cryptocurrency asset index capabilities with Lukka in December 2020.

The market for cryptocurrency assets continues to grow and with that, investor demand for benchmarking and index-based solutions based on crypto and blockchain assets is more essential than ever. The Digital Market Indices will make it easier for investors to access and assess this emerging technology-driven asset class while potentially mitigating some of the common risks associated with this traditionally speculative market.

"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."

In addition to the new S&P Digital Market Indices, S&P DJI also launched customized cryptocurrency indexing solutions at the end of last year. Since then in the first quarter of 2021, IDX Insights launched a series of risk-managed custom cryptocurrency indices – the first based on S&P DJI's custom cryptocurrency indexing capabilities.

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500^® and the Dow Jones Industrial Average^®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/.

 

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SOURCE S&P Dow Jones Indices

FAQ

What are the newly launched S&P Digital Market Indices?

The S&P Digital Market Indices are benchmarks to measure the performance of digital assets like Bitcoin and Ethereum on cryptocurrency exchanges.

When were the S&P Digital Market Indices launched?

The S&P Digital Market Indices were launched on May 4, 2021.

What entities are included in the S&P Digital Market Indices?

The initial indices include the S&P Bitcoin Index, S&P Ethereum Index, and S&P Cryptocurrency MegaCap Index.

How does S&P DJI determine the eligibility for the Digital Market Indices?

The indices use pricing data from Lukka, a crypto software and data provider, for determining eligibility and pricing.

What impact do the S&P Digital Market Indices have on cryptocurrency investment?

These indices provide reliable benchmarks, making it easier for investors to assess cryptocurrency investments and potentially mitigating associated risks.