S&P Dow Jones Indices (DJI) has recently launched three new cryptocurrency indexes which are the S&P Bitcoin Index, S&P Ethereum Index, and S&P Crypto Mega Index. These indexes will be allowing the retail traders to conveniently acquire exposure to these two giant cryptocurrencies.
S&P DJI Launched Bitcoin and Ethereum Indexes
Investors and traders have been eagerly waiting for a traditional finance product that tracks the prices of cryptocurrencies for a very long time.
In addition to this, S&P made an announcement last year that a cryptocurrency index is about to be released in the year 2021, and additionally, they made good on that vow with the recent revelation.
As per the information released regarding the indices, the new indices can be used as tracking and benchmarking tools in the legacy finance world.
Moreover, the reliable pricing from an authoritative source will be preventing the investors from having to connect to potentially shady cryptocurrency APIs that may not necessarily provide the correct pricing data.
Along with this, S&P revealed that they are hoping that this move will be making it more convenient for the investors to access the cryptocurrency asset class, and claimed that this will be able to reduce some risks of the speculative and fluctuating crypto market.
Methodology of the Indices
The indices will be using the data from a cryptocurrency provider, Lukka, which process screens various digital exchanges on the basis of their translucency, data integrity, and several other factors to determine their involvement in the final price weightage.
Also, it should be known that they are going to be available on most of the major index catalogs under the tickers SPCMC, SPETH, and SPETH. Moreover, SCMC is weighted by the market capitalization, and hence it is a special one among all the others launched by the index.