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Another piece of news that should delight crypto investors. The world’s leading provider of index ideas and concepts, the S&P Dow Jones has launched crypto indices. Another step towards the democratization of cryptocurrencies on a global scale.
Basically, these indices will replicate the performance of a basket of cryptos contained in a cryptocurrency exchange platform. In the launch phase, it would only be Bitcoin and Ethereum which are already popular assets for institutional players.
Here are the first three crypto indices launched by S&P Dow Jones:
S&P Bitcoin Index => replicates the performance of Bitcoins
S&P Ethereum Index => replicates the performance of Ethereum
S&P Cryptocurrency Mega Cap Index => replicates the performance of Bitcoin joined to Ethereum.
There is no doubt that the performance of the two giants of the crypto industry seduced the S&P Dow Jones officials to create these indices. Despite the fact that Bitcoin can’t break out of the technical weight of $60K, its annual performance is much better than that of the broad cap companies on the US stock market. The best so far has only risen by 21.75% over the year.
The market capitalization of the two assets is a strong argument. From the top 1000 billion, only 4 US companies have a better valuation than BTC. As for Ethereum, valued at over $350 billion, there is not a company in Europe with a higher capitalization than ETH.
Bitcoin and Ethereum cannot be ruled out, they have become key assets in international finance. Peter Roffman, Head of Innovation and Strategy at S&P Dow Jones Index, said, “Traditional financial markets and digital assets are no longer mutually exclusive.”
Since MicroStrategy followed suit last August. It was followed by many other institutional players. PayPal was not going to be long in coming, specifically in November, the online payment platform jumped into cryptocurrencies. JP Morgan, Black Rock and Fidelity are giving investment options to their clients.
Peter Roffman went on to say that:
So the argument of Bitcoin and Ethereum being institutionalized also played a big role in the appearance of these indices. Peter goes on to say that “As cryptocurrencies go mainstream, investors now have access to reliable and transparent benchmarks backed by institutional grade pricing data. “