- S&P Dow Jones has launched indices tracking Bitcoin and Ethereum.
- The move is being seen as a big validation for the cryptocurrencies.
- S&P Dow Jones plans to increase its coverage of the digital assets going forth
In what seems to add deeper mainstream hue to cryptocurrencies, the world’s largest index provider – S&P Dow Jones Indices (S&P DJI) – has announced the launch of its digital asset benchmarks named S&P Digital Market Indices.
The indices that have been launched will gauge the performance of cryptocurrencies listed on recognised open crypto exchanges. To begin with, S&P DJI has rolled out three indices -- S&P Bitcoin Index, S&P Ethereum Index and S&P Cryptocurrency MegaCap Index. S&P DJI also hinted at broadening its coverage in the digital asset space through the course of the year.
The indices are using the pricing data from crypto software provider Lukka. As on date, on a 52-week basis, S&P Bitcoin Index was up 516.06%, S&P Ethereum Index was up 1,569.03% and S&P Cryptocurrency MegaCap Index was up 646.50%.
"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," according to Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices.
Experts see this move as a ringing endorsement to the growth of the digital assets market. The move is also likely to push many policymakers across the globe to shun their skepticism towards cryptocurrencies.
On a year-to-date basis, most cryptocurrencies have rallied to unseen levels. The world’s largest cryptocurrency, Bitcoin, for example, has peaked to the price of US$64,000 and a market capitalisation of US$1 trillion in mid-April, before seeing a correction.
On the other hand, the world’s second largest cryptocurrency Ethereum has continued to rally.