Assessing the market performance of cryptocurrencies just got easier for investors with S&P Dow Jones Indices launching a range of new crypto-focused indices.
The leading index provider added five products to benchmark the performance of emerging digital assets, building on three existing benchmarks released earlier this year that focused on Bitcoin and Ethereum.
Foremost among the new indices is the S&P Cryptocurrency Broad Digital Market (BDM) Index, which provides a wide snapshot of the cryptocurrency market and includes more than 240 coins at launch.
In a statement announcing the indices launch, Peter Roffman, global head of innovation and strategy at S&P Dow Jones, said:
For more than a century, our indices have offered insight into how the markets are performing. Now, with the introduction of the S&P Cryptocurrency Broad Digital Market Index, we’re providing that answer to cryptocurrency investors.
Peter Roffman, S&P Dow Jones Indices
The indices use pricing data provided by crypto software and data company Lukka.
Transparency Needed as Financial Markets Open the Door to Crypto
Indices offering transparent benchmarking for cryptos is another example of how financial markets are moving towards enabling investment in digital assets.
A growing number of countries are approving crypto-based EFTs to be listed on financial exchanges, including multiple Canadian funds, and Bitcoin EFTs in Brazil and Dubai.
Although investor demand is high, many countries remain cautious about introducing crypto EFTs. The US Securities and Exchange Commission (SEC) is considering a number of requests for crypto EFTs, including one filed by investment bank Goldman Sachs in March. The ASX said in May that it’s exploring the safeguards required to enable Australians to access a crypto-based EFT, because “these assets are broadly being sought by retail investors … ”
