The well-known global resource for index-based data and research has introduced new crypto indices that are tied to the performance of Bitcoin and Ethereum. Bitcoin (BTC) and Ethereum (ETH)are the two largest cryptocurrencies in the world of digital currency.
The new crypto indices introduced by S&P Dow Jones Indices is to bring transparency to the expanding digital currency market.
With the advancing uses and recognition of the cryptocurrencies, it might be a good time for the interested parties to start investing in Bitcoin and other cryptocurrencies using popular exchanges such as SwissBorg or Kraken.
Newly Introduced Crypto Indices
On Monday, May 3rd, S&P Dow Jones Indices announced the launch of three crypto indices that include:
- S&P Bitcoin Index (SPBTC), based on Bitcoin
- S&P Ethereum Index (SPETH), based on Ethereum
- S&P Cryptocurrency MegaCap Index (SPCMC)
The SPCMC has been designed by the company to keep a track of Bitcoin and Ethereum’s performance, based on the market capitalization of both the cryptocurrencies.
As the company noted, “The indices aim to bring transparency to the emerging cryptocurrency market.” The crypto indices mentioned above aim to assess the performance of digital currencies (such as BTC and ETH) on well-known and open crypto exchanges that meet the requirements of minimum liquidity and market capitalization. The newly launched three crypto indices mentioned are now available on S&P Dow Jones Indices’ website.
S&P Dow Jones Indices Initial Plan
According to reports, S&P Dow Jones Indices initially targeted the coverage of approximately 550 digital currencies and planned on launching the crypto indices sometime later this year.
As per the announcement, the crypto pricing and reference data of S&P is provided by Lukka, which is a crypto accounting and data company. S&P Dow Jones Indices is also supported by its parent company S&P Global, accounting advisor CPA.com and billionaire investor George Soros.
The introduction of crypto indices by S&P Dow Jones Indices is a beneficial step for the digital currency industry as it can boost the adoption of cryptocurrencies in traditional finance. This can significantly highlight the potential of Bitcoin and other cryptocurrencies such as Ethereum that is currently the second-largest cryptocurrency in the market.
Therefore, this can be a suitable time for the investors and traders, both existing and potential, to use secure exchanges and start investing and trading cryptocurrencies. People who are interested in crypto trading can use ByBit exchange, whereas, people who do not have enough time on their hands to actively trade can opt for PrimeXBT Covesting for copy-trading.