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S&P Dow Jones launches three cryptocurrency indexes

Updated: Aug 31, 2024
Published: May 4, 2021
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Cryptocurrencies have penetrated the traditional financial markets recently. Namely, several banks and platforms have started offering crypto-related services to their customers. Take the case of S&P Dow Jones which has now listed their first cryptocurrency indexes, including Bitcoin and Ether.

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Crypto indexes go live on S&P Dow Jones

S&P Dow Jones Indices introduced three cryptocurrency indexes yesterday, debuting Bitcoin and Ether in the process. In fact, this is the first time an index that tracks cryptocurrency performance will be available on the platform.

In its announcement yesterday, S&P Dow Jones said, “These indices are designed to measure the performance of a selection of digital assets (crypto assets) listed on recognized, open exchanges that meet minimum liquidity and market capitalization criteria. The indices aim to bring transparency to the emerging cryptocurrency market.”

The newly-launched indexes include the Ether-based S&P Ethereum Index (SPETH), the Bitcoin-based S&P Bitcoin Index (SPBTC), and the S&P Cryptocurrency MegaCap Index (SPCMC). In addition, the third index is designed to track the performance of BTC and ETH as measured by market capitalization. Accordingly, the three indices are now live on the S&P Dow Jones Indices website.

S&P Dow Jones Index expected to be competitive

The launch of these three cryptocurrency indexes is a confirmation of the company’s previous announcement. In December, Cryptonary reported that S&P Dow Jones would be launching its cryptocurrency indexes. At the time, Bitwise and Bloomberg Galaxy Crypto Index were the only available benchmarks in the market. As of now, S&P Dow Jones will be providing stiff competition to them.

S&P spokesman Ray McConville stated that the indexes measure appreciation and not the actual prices of the cryptocurrencies. “So comparing the two indices, we can see that bitcoin YTD (year to date) has grown 95.67% in value vs. ETH, which has grown 273.72% in value YTD. The actual index value isn’t so much as important as the change in that index value over time,” he added.

In addition, the company stated that crypto accounting and data company Lukka will provide the pricing and reference data. As a matter of fact, Lukka is supported by S&P Dow Jones Indices’ parent company S&P Global. As well, the firm is backed by accounting advisors CPA.com and billionaire investor George Soros.

Cryptocurrencies gaining recognition from traditional institutions

This latest development is yet another example of a traditional financial institution offering crypto-related services. The move comes during another cryptocurrency market rally. Yesterday, Ether charged to a new all-time high above $3,400.

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