S&P Dow Jones Launches Bitcoin and Ethereum Indices


  • S&P Dow Jones Indices has launched its first cryptocurrency indices.
  • The brand new indices are designed to trace the market efficiency of BTC and ETH.

S&P Dow Jones Indices, a three way partnership between S&P World, the CME Group, and Information Corp, has introduced the launch of its first cryptocurrency indices, together with Bitcoin (BTC) and Ethereum (ETH).

First introduced in December 2020, the brand new merchandise “goal to convey transparency to the rising cryptocurrency market” and can measure the efficiency of chosen digital property “listed on acknowledged, open exchanges that meet minimal liquidity and market capitalization standards.”

Initially, S&P Dow Jones Indices focused about 550 of the highest traded cryptocurrencies for its crypto indices, however determined to incorporate solely the 2 largest property by market cap for the launch.

Based on the announcement, the S&P Cryptocurrency Index Sequence includes the S&P Bitcoin Index (SPBTC) and S&P Ethereum Index (SPETH), each designed to trace the efficiency of Bitcoin and Ethereum respectively, in addition to the S&P Cryptocurrency MegaCap Index (SPCMC), which tracks BTC and ETH efficiency by market cap.

The pricing and reference knowledge for the S&P Cryptocurrency Index Sequence is drawn from Lukka, a New York-based crypto knowledge supplier. As detailed by the corporate, the indices don’t measure the precise value of the cryptocurrencies, as a substitute utilizing Lukka’s proprietary methodology to find out the property’ “honest market worth” on a points-based system.

As of three Might 2021, the values of the S&P Bitcoin, S&P Ethereum and S&P Cryptocurrency MegaCap indices stood at 7,678.36, 29,405.14 and 5,895.79, respectively.

Continued institutional adoption

The information of the S&P Cryptocurrency Index Sequence introduction comes amid renewed optimism on crypto markets, with Ethereum hitting a brand new all-time excessive above $3,500 on Tuesday, simply two days after it soared previous the $3,000 mark on Sunday.

With the cumulative market cap of all cryptocurrencies at present sitting at over $2.27 billion, S&P’s transfer is one other step in direction of the broader acceptance of digital property amongst institutional traders.

In current months, corporations together with Tesla and MicroStrategy have added Bitcoin to their stability sheets, whereas cost giants MasterCard and PayPal–more likely to be adopted by Visa–have included crypto-enabled companies into their platforms.

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