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Cryptocurrency indices to go live in 2021

Cryptocurrency

S&P Dow Jones has officially revealed that it will launch its cryptocurrency indices next year, becoming the last major financial institution to enter the digital currency market.

S&P Dow Jones Indices, a division of financial data provider S&P Global, revealed yesterday that it would launch cryptocurrency indices in 2021. According to the Reuters report, S&P Dow Jones Indices is partnering with virtual currency company Lukka, based in New York to use your data for your products.

Cryptocurrency indices measure the performance of more than 550 leading cryptocurrencies by market cap. Both companies’ statements reveal that S&P customers would have access to several benchmarking tools that would allow them to create custom cryptocurrency indices.

Speaking to Reuters, S&P Dow Jones Indices’ global head of innovation and strategy, Peter Roffman, said that cryptocurrencies becoming an emerging asset class means that it is the right time to create independent, reliable and easy-to-use benchmarks .

S&P Dow Jones’ entry into the cryptocurrency market comes from a place of trust. The joint statement by S&P Dow Jones and Lukka revealed that they are confident that cryptocurrencies will reach conventional investment status next year.

S&P and Lukka hope that by providing more reliable price data, it will be easier for investors to access the new asset class. It would also help clients to assess some of the relative risks associated with the volatile and speculative market.

Entry of institutional investors into the market

S&P becomes the last financial institution to enter the cryptocurrency market. Other leading financial companies, such as Fidelity Investments and Japan’s Nomura Holdings, have already started offering cryptocurrency services to their institutional investors. Some major exchanges, such as the New York Stock Exchange (NYSE), through its subsidiary Bakkt, offer a variety of cryptocurrency services to users around the world.

Not long ago, Bitcoin and other digital currencies were rejected by major financial institutions. However, several of them, including JPMorgan, have changed their minds and are now offering various cryptocurrency services to their customers.

The entry into the market of payment processing company PayPal has made it easier for millions of people around the world to access major cryptocurrencies such as Bitcoin, Litecoin, Ethereum and Bitcoin Cash.

Deutsche Bank recently advocated that banks and other financial institutions offer cryptocurrency services. The bank revealed that investors are increasingly choosing Bitcoin over gold to protect the US dollar and protect itself from inflation.

S&P would not be the last financial institution to launch a cryptocurrency product, as it is expected that more companies will enter the cryptocurrency market next year.

Disclaimer - OBN is an informational website which aims to give the latest blockchain related news to the readers. Articles on OBN should not be considered as investment advice. Trading cryptocurrencies is a high-risk investment, every user is advised to consult an expert before making any decisions.