In the latest big move by traditional finance to incorporate crypto, 550 coins will appear in the new indexes starting next year.
- Founded in 1882, S&P Dow Jones Indices LL is a joint venture between S&P Global, the CME Group, and News Corp. It’s among the leaders in providing investable and benchmark indices to traditional financial markets.
- The New York-headquarter organization plans to enter the cryptocurrency field as well, according to a Reuters report from earlier today.
- As per the report, S&P Dow Jones Indices has partnered with the digital asset company Lukka to release cryptocurrency indices in 2021.
- The innovative indices will use data from Lukka on more than 550 digital assets. Investors who want to take advantage of the new products will be able to work with the index provider to create customized indices and other benchmarking tools on cryptocurrencies.
- Peter Roffman, global head of innovation and strategy at S&P Dow Jones Indices, asserted that the launch of the indices would come as a response to the expanding popularity and demand for cryptocurrencies.
- “With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable, and user-friendly benchmarks.” – he added.
- It’s worth noting that the cryptocurrency space, and Bitcoin, in particular, has enjoyed substantial interest from traditional financial organizations and individuals.
- Prominent investors like Paul Tudor Jones III invested in the primary cryptocurrency, while others, such as BlackRock’s CEO Larry Fink, had a change of heart. The head of the world’s largest asset manager went from “bitcoin is an index for money laundering” in 2017 to “bitcoin could possibly become a global market” earlier this week.