S&P Dow Jones Indices, the financial data provider of S&P Global Inc, announced that they would launch cryptocurrency indexes in 2021. This makes them an influential finance company to enter the cryptocurrency world.
New York-based crypto company Lukka provides the exact price data for S&P DJI. As the cryptocurrency asset market has continued to grow in recent years, investor interest in index-based cryptocurrency solutions has increased. Showing an increasing interest in reliable price data for institutions.
S&P customers will be able to work with the index provider to create custom indices and other cryptocurrency benchmarking tools, S&P and Lukka said. It also states that S&P and Lukka hope that more reliable price data will make it easier for investors to access cryptocurrency and reduce some of the highly volatile and speculative market risks.
“Digital assets like cryptocurrency are becoming rapidly emerging asset class, the time is right for independent, reliable, and easy-to-use benchmarks,” said Peter Roffman, a global head of innovation and strategy S&P Dow Jones Indices.
This does not mean that the Dow Jones or the S & P500 includes crypto indexes, but they can offer cryptocurrency-based indices to other exchanges. This means that if crypto is provided with the world’s best-known index providers, investors could have easier exposure and more trust in crypto.
This partnership with S&P DJI is a milestone that can bridge the gap between cryptocurrencies and traditional financial services.
Cryptocurrency has been around for more than a decade and has attracted more interest from major financial companies in recent years. Major companies, including Fidelity Investments and Japan’s Nomura Holdings Inc, have begun to store bitcoins and other cryptocurrencies for institutional investors, while major exchanges have started to offer bitcoin derivatives.
The emergence of a more mainstream market infrastructure makes bitcoin more accessible to institutional investors. Hedge fund managers such as Paul Tudor Jones and Stanley Druckenmiller say they have incorporated bitcoin into their broad investment strategies.