World’s Largest Index Provider Is Looking Into “Direct Exposure” to Cryptocurrencies says CEO
Henry Fernandez, Chairman, and CEO of the world’s biggest index provider MSCI Inc. which is also developing some cryptocurrency indices and products, said in an interview with Bloomberg that they are actively looking into the crypto space.
“We're still exploring a variety of options and talking to a number of partners, but we're very bullish on digital assets on the blockchain technology associated with it, obviously including cryptocurrencies. I think they have a role to play in the world. And we're looking at that. We're looking at it from the point of you know about direct exposure to the various types of currencies.”
In June, Fernandez had said that the global securities index publisher is considering offering indices based on crypto assets and has been talking to experts about it.
MSCI publishes popular indexes for equities and other securities, which helped asset managers and investors allocate $14.5 trillion in assets globally by the end of last year.
In its recent expansion of offerings, MSCI launched 20 thematic indexes on “megatrends” in China this year to help investors guide their capital into projects in alignment with the Chinese government’s policy goals.
In this week’s interview, besides talking about crypto, Fernandez also shook off concerns about the “investability” of Chinese stocks following Beijing’s recent regulatory crackdown, pointing to previous instances where markets rebounded in the aftermath.
Regulatory compliance has weighed on China “every three, four, five years and obviously the markets have sold off at the time. But very quickly afterward, the markets have recovered and gone through to new heights,” he said.
“There is a lot of criticism on China in terms of lack of compliance,” and it is now going through a corrective phase, Fernandez said, adding: “Countries go through periods like this.”
China also cracked down on cryptocurrency mining and leverage trading in the country that led to a deep sell-off in the crypto asset prices in May and June; however, since then, they have rebounded sharply and are now making moves towards their all-time highs.