In the midst of a renewed boom in crypto markets, S&P Dow Jones Indices, a major global resource for index-based data and analysis, has launched the first cryptocurrency indices.
Three new cryptocurrency indexes have been unveiled by S&P Dow Jones Indices. Retail traders will be able to quickly gain exposure to Bitcoin and Ethereum via the S&P Bitcoin Index, S&P Ethereum Index, and S&P Crypto Mega Cap Index (a blend of Bitcoin and Ethereum). The S&P DJI website has all three indices available right now.
At the press time, Bitcoin was trading at $56,188, down 3.95%, while Etherreum at $3,356, up 5.78% on Tuesday.
The new crypto indices, according to the firm, are intended to track the performance of crypto assets listed on well-known, transparent exchanges that meet minimum liquidity and market capitalization criteria. S&P DJI said, "The indices aim to bring clarity to the evolving cryptocurrency market."
S&P DJI had previously stated that it would launch cryptocurrency indices in late 2021, with coverage of up to 550 digital assets.
Lukka, a crypto accounting, and data firm, provides S&P crypto pricing and reference data, according to the announcement. S&P DJI's parent company, S&P Global, as well as billionaire investor George Soros and accounting advisor CPA.com, are all investors in the company.
To assess their inclusion in the final price weightage, Lukka's mechanism screens various digital exchanges on the basis of openness, data integrity, and other factors.