S&P Dow Jones Indices, a subsidiary of financial data provider S&P Global Inc has become the latest mainstream financial company to join the growing crypto bandwagon as they announced that they would be listing two cryptocurrency indices by 2021 The listed crypto indexes would make use of data from a New-York based virtual currency company Lukka.
A joint statement released by S&P DJI and Lukka revealed that clients of the financial firm would work with them to create customized indices and benchmarking tools for cryptocurrencies. The interest of S&P DJI in digital assets is an indication that cryptocurrencies are going mainstream, the indices would make it easier for investors to access digital assets. With such large players getting involved in the nascent technology, the time has come for cryptocurrencies to compete with mainstream assets.
Peter Roffman, global head of innovation and strategy at S&P Dow Jones Indices believes that the time has come to create independent, reliable, and user-friendly benchmarks as crypto assets are entering the mainstram. He said,
“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks,”
What Could This Mean For Crypto Asset Class?
S&P DJI is one of the most noted and traded indices around the globe and exposure to cryptocurrency via crypto indices would propel cryptocurrencies to new heights. An S&P index listing means that the demand and market for digital assets have started to expand and investors don’t see it as a “get rich quick scheme.”
The S&P DJI listing can also open the gates for Bitcoin Exchange Traded Fund or Bitcoin ETF which has been rejected up until now for a reason that the market is not big enough or wide enough for ETFs. The news about the listing is in fact even more bullish than PayPal allowing crypto trading through its platform.