S&P Dow Jones Indices to Launch Cryptocurrency Indexes in 2021; Easing Access for Investors
“Slowly, at first, then all at once.” The latest major finance company to join the crypto bandwagon is S&P Dow Jones Indices. A division of finance data provider S&P Global Inc, the company said on Thursday, would be launching cryptocurrency indices in 2021.
It will be working with the New York-based virtual currency company Lukka to provide data on more than 550 of the top traded cryptos. S&P’s clients will also work with the index provider to create customized indices and other tools on digital assets, it said in a joint statement. Peter Roffman, the global head of innovation and strategy at S&P Dow Jones Indices said,
“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable, and user-friendly benchmarks.”
They further said that the idea is to make it easier for investors to access more reliable pricing data about this new asset class and reduce some of the volatile and speculative market risks.
Bitcoin adoption has been gradual up until 2020, when suddenly, everyone wants in.
This is just another step this year that takes crypto into the mainstream. As Bitcoin rallies 170% in 2020, everyone wants to adopt the leading digital currency and enter the realm of cryptos. One analyst noted,
“Having mainstream indexes which represent crypto performance will only bolster adoption, and lead to the creation of fund which represent those indexes.”