S&P Dow Jones Indices is one of the world’s largest index providers, best known for the S&P500 and the Dow Jones Industrial Average (DJIA), and is venturing into the world of crypto. As more institutional capital plunges into the novel asset class, their demand for a benchmark to measure returns against increases. As of now, some of the presently available benchmarks are Bitwise 10/20/70/100 and the Bloomberg Galaxy Crypto Index (BGCI).
Through a partnership with the New-York based virtual asset data company: Lukka, S&P Dow Jones Indices will build out customised indexes and benchmarking tools on the top 550 traded crypto-assets.
Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices, stated:
“For more than a century, S&P Dow Jones Indices has been a pioneer in creating innovative and relevant indices and benchmarks that reflect the global market’s ongoing growth and evolution. With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks. We’re excited to work with Lukka, who has been at the forefront of digital asset data services, to promote more transparency in this nascent sector.“
This announcement strengthens and validates the place the crypto asset class is cementing for itself within global financial markets. These new indexes are expected to be released in 2021, they will be used for benchmarking purposes. However, like the S&P500, there is a high probability they eventually turn into index funds tracking them.