S&P Dow Jones Indices, a division of financial data provider S&P Global Inc, will launch cryptocurrency indices in 2021, reported Reuters.
S&P DJI-branded products will use data from New York-based company Lukka, which processes data on the prices of 550 cryptocurrencies. S&P clients will be able to work with Lukka to create customized indices and other cryptocurrency benchmarking tools.
S&P and Lukka said in a joint statement that more reliable price data will make it easier for investors to access a new asset class and reduce risks in this volatile market.
“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks,” said Peter Roffman, global head of innovation and strategy at S&P Dow Jones Indices.
Reuters notes that such a decision by one of the world’s most famous index providers could help cryptocurrencies become an even more popular investment.
S&P Dow Jones Indices is a joint venture between S&P Global, CME Group and News Corporation. The company’s most famous indices are the S&P 500 and the Dow Jones Industrial Average (DJIA).