Renowned index provider, S&P Dow Jones Indices (S&P DJI), has announced that it would now be launching crypto-related indices for its users, the indices would include S&P Cryptocurrency Broad Digital Market (BDM) Index that contains over 240 crypto tokens already.
This is in line with the various expansions the firm has made in recent times within the crypto space. The new indices added to its portfolio include S&P Cryptocurrency LargeCap Index – a subset of the BDM measuring the performance of the constituents with the largest market capitalization. S&P Cryptocurrency BDM Ex-MegaCap Index a subset of the BDM that excludes the constituents of the S&P Cryptocurrency MegaCap Index (Bitcoin and Ethereum).
Additionally, it includes the S&P Cryptocurrency BDM Ex-LargeCap Index, a subset of the BDM that excludes constituents of the S&P Cryptocurrency LargeCap Index. S&P Cryptocurrency LargeCap Ex-MegaCap Index is a subset of the BDM that measures the performance of the constituents of the S&P Cryptocurrency LargeCap Index, excluding the constituents of the S&P Cryptocurrency MegaCap Index. These new indices would be joining existing indices that the index provider already has.
The announcement went on to reveal that Lukka, a crypto software and data provider, would be used to “determine the eligibility universe and pricing of individual constituents.” S&P first used Lukka in 2020 for its crypto asset indices.
The firm’s Global Head of Innovation and Strategy, Peter Roffman, ascribed the latest development to the growth the crypto space has witnessed in recent space. According to him, “the expansion of our Digital Market Indices family gives one of the broadest snapshots yet of this rapidly growing asset class with the ability to slice and dice by market cap. We’re excited to bring this significant level of additional transparency to the cryptocurrency market.”
He continued that “for more than a century, our indices have offered insight into how the markets are performing. Now, with the introduction of the S&P Cryptocurrency Broad Digital Market Index, we’re providing that answer to cryptocurrency investors.”
In a previously published article, we reported that New York-based American finance company MSCI Inc was considering offering a crypto index. The MSCI index is predicted to complement that of S&P index. However, the company was yet to provide more details about its proposed index.
Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.