S&P Dow Jones Indices introduced the first cryptocurrency indices based on Bitcoin & ETH
According to the announcement yesterday, S&P Dow Jones Indices has launched three new cryptocurrency indices.
S&P Dow Jones Indices has introduced its first cryptocurrency indices amid a renewed surge in crypto markets
Investors will be able to take advantage of the Bitcoin and Ethereum indices offered by S&P DJI. The newly introduced indices include Bitcoin-based S&P Bitcoin Index (SPBTC), Ether-based S&P Ethereum Index (SPETH), and S&P Cryptocurrency MegaCap Index (SPCMC), which is designed to track the performance of BTC and ETH weighted by market cap. All three indices are immediately available on the S&P DJI website.
People have been waiting a long time for a traditional financial product to track cryptocurrency prices. S&P last year announced that a crypto index will launch in 2021, and they have made that oath well with this latest revelation.
The new indices can be used as tracking and benchmarking tools in the legacy finance world, and the more reliable pricing from an authoritative source will prevent investors from having to connect to potentially shady cryptocurrency APIs that may not necessarily provide the correct pricing data. S&P hopes that this move will make it easier for investors to access the cryptocurrency asset class, and they claim that this will reduce some of the risks of the speculative & volatile crypto market.
While there is still no product that retail investors can directly purchase in order to gain exposure to actual cryptocurrency prices, like an ETF (the closest thing is GBTC, which isn’t always an accurate exposure vehicle as the premium fluctuates wildly), this move by the S&P further serves to legitimize and solidify the cryptocurrency market’s domain in the world of stocks & ETFs. This industry as a whole is warming up to the idea of assimilating crypto, which could make an eventual ETF approval much easier down the road.
You can see the BTC price here.
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