S&P Dow Jones customers will be able to access custom benchmarks and indices. No one knows the exact date for the launch of cryptocurrency indices.
S&P Dow Jones Indices (S&P DJI) is one of the leading providers of financial indices in the world. In recent days, the organization itself announced in a statement that it will launch a product that focuses on cryptocurrencies starting next year.
In that text, S&P DJI stated that its cryptocurrency index is based on data from the Lukka company. The latter is a provider of cryptocurrency price data based in New York, the United States.
This partnership will allow S&P customers to access personalized indices and establish a comparative analysis of the behavior of various cryptocurrencies, according to the statement.
“S&P DJI will provide customized indexing and benchmarking solutions. In addition, Lukka’s proprietary crypto asset price data will support the S&P DJI brand,” explained S&P Dow Jones Indices.
According to the press release, the growth in the popularity of cryptocurrencies has aroused greater interest from investors. For that reason, “indexing and benchmarking solutions based on crypto assets and blockchain technology has grown and reinforced the need for reliable price data,” the statement said.
S&P DJI Global Head of Innovation and Strategy, Peter Roffman, said that this is the right time for “independent, reliable and user-friendly benchmarks” that focus on cryptocurrencies. In his opinion, the launch of their new service allows for promoting greater transparency in the industry.
No one knows the exact date, or a tentative one, to make the new service available to customers of the pioneering financial indexing organization founded in the late 19th century.
The Dow Jones Transportation Index is the oldest in the world, and people in the financial world still use it. That index currently includes airlines, international courier companies, and others in the transportation sector, such as American, Delta and United Airlines, and FedEx.
Institutions Turn Their Attention to Bitcoin and Other Cryptocurrencies
The provider of financial indices states that large investors and institutions are increasingly paying attention to cryptocurrencies. This has particularly happened in recent months.
MicroStrategy and Square, among other companies, have already made their investments in Bitcoin public. Guggenheim Partners, a global investment services and financial advisory company, recently showed interest in investing in Grayscale’s Bitcoin fund.
The Grayscale fund is a good example of this institutional interest. Just a few days ago, the amount of Bitcoin in that fund exceeded 500,000 units, equivalent to about USD 10 billion at the current price, which is around USD 19,300 per unit.
At the time of writing this article, the market capitalization of Bitcoin is close to USD 360 billion. Bitcoin’s recent rise has allowed it to become the equivalent of the second largest bank in the world, based on the total value of coins in circulation.
Once again, the interest of financial institutions in the pioneering cryptocurrency shows its supremacy as a store of value. It has also proved to be the best option for retail investors who want to safeguard their funds.
By Alexander Salazar
