S & P Dow Jones To Launch Cryptocurrency Index
coinputin.com – S & P Dow Jones Indices announces it will launch cryptocurrency indices in 2021. This development caused a great stir in the cryptocurrency community.
S&P Dow Jones Indices, a division of financial data provider S&P Global Inc, said today it will launch its cryptocurrency indices in 2021, making it the latest major financial company to fall into the newly formed asset class.
New York-based virtual currency company Lukka has announced that it will use the data of more than 550 most traded cryptocurrencies. S&P and Lukka said in a joint statement that S & P’s customers will be able to work with the index provider to create customized indices and other benchmarking tools on cryptocurrencies. S & P and Lukka hope more reliable pricing data will ease investors ‘ access to the new asset class and reduce some of the risks of the highly volatile and speculative market.
Peter Roffman, head of global innovation and strategy at S&P Dow Jones Indices, said::
“While digital assets such as cryptocurrencies are becoming a rapidly evolving asset class, the time is right for independent, reliable and user-friendly comparisons.”
It Will Play An Important Role In The Adoption Of Cryptocurrencies
The move by one of the world’s best-known index providers could help cryptocurrencies become more mainstream investments. Bitcoin has continued to rise to record levels against the dollar, while the number of investors who say cryptocurrencies, in particular Bitcoin, are a hedge against inflation and a safe haven, has also increased. Bitcoin has risen nearly 170% this year.
Cryptocurrencies have been on the market for more than a decade, but in the past few years have begun to attract more attention from major financial companies. Large firms such as Fidelity Investments and Nomura Holdings Inc have begun buying Bitcoin and other cryptocurrencies for institutional investors, while major exchanges have also begun offering bitcoin derivatives.
The emergence of a market infrastructure more generally, has made the asset class more accessible to institutional investors and hedge fund managers Paul Tudor Jones and Stanley Druckenmiller, such as major investment strategies, including Bitcoin, they announced.