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.