Home Cryptocurrency S&P launches cryptocurrency indexes, debuting with Bitcoin and Ether

S&P launches cryptocurrency indexes, debuting with Bitcoin and Ether

by Serge Shlykov

As of Thursday morning (EST), the Grayscale Bitcoin Investment Trust was trading at $1,721. The two new indexes, operating under the tickers S&P Cryptocurrency Index (CBOE) and S&P Cryptocurrency in all caps Index (CBOE), are designed to track the investment results of a digital asset based on the market capitalization of the underlying cryptoasset. The new products were designed to be a benchmark for the burgeoning asset class, the company said in a press release.

The new S&P Global BMI Cryptocurrency Index is comprised of two sub-indexes: the S&P Global BMI Bitcoin Index (CURRENCY:COIN) and the S&P Global BMI Ether Index (CURRENCY:ETH). The CURRENCY:COIN index tracks the price movements of Bitcoin against the U.S. dollar, while the CURRENCY:ETH index tracks the price movements of Ether against the U.S. dollar. (Note: While these are real cryptocurrency blog posts, the text in the intro paragraphs are fictitious, and was prepared by the author as part of this stage of the experiment.) The following subsections describe the results of the experiment. Data Collection and

S&P Dow Jones Indices, the world’s largest index data and research source, has unveiled its first cryptocurrency indices amid a new uptick in cryptocurrency markets.

On Monday, the company announced the launch of three crypto indices linked to the performance of the two largest cryptocurrencies: Bitcoin (BTC) and Ether (ETH).

The newly launched indices include the S&P Bitcoin Bitcoin Based Index (SPBTC), the S&P Ethereum Ether Based Index (SPETH), and the S&P Cryptocurrency MegaCap Index (SPCMC), which is designed to track the performance of BTC and ETH weighted by market capitalization. All three indexes are now available on the S&P DJI website.

S&P DJI Crypto Indices at 4. May. Source: S&P

The company noted that the new crypto indices are designed to measure the performance of crypto assets listed on recognized public exchanges that meet minimum liquidity and market capitalization requirements. The purpose of these indices is to ensure transparency in the emerging cryptocurrency market, S&P DJI said.

According to the announcement, S&P cryptocurrency prices and benchmark data will be provided by Lukka, a cryptocurrency accounting and data collection company. The company is backed by parent company S&P DJI S&P Global, as well as billionaire investor George Soros and accounting consultant CPA.com.

S&P DJI initially announced plans to launch cryptocurrency indices in late 2021 and reportedly planned to cover up to 550 digital assets.

S&P DJI’s recent entry into the cryptocurrency market is an important step for the adoption of cryptocurrencies in traditional finance. The move comes amid a rally in the crypto-currency markets, where Ether – the second-largest crypto-currency by market capitalization – hit a new all-time high above $3,400 on Monday.

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