S&P Dow Jones Indices has made it official: they will launch cryptocurrency indexes in 2021, becoming the latest major finance company to make its inception into the digital asset industry.
More than 550 of the top traded coins to be included in the indexes.
As Reuters initially reported on December 3, 2020, such indexes will include the performance of over 550 top traded crypto by market cap, not to miss Bitcoin, and they will utilize data from the New York-based firm Lukka.
As mentioned in a statement issued by both organizations, S&P’s clients could build customized indexes, among other benchmarking tools on cryptocurrencies. Peter Roffman, global head of Innovation and Strategy at S&P Dow Jones Indices, reported Reuters:
With digital assets such as cryptocurrencies maturing a rapidly emerging asset class, the time is right for self-governing, dependable, and user-friendly benchmarks.
In the joint statement, both parties also discussed that they expect cryptocurrencies to achieve the status of “mainstream investments” with the indexes’ launching in 2021.
More critical financial institutions have been teasing with the crypto sphere, such as JP Morgan, who has been giving a remarkable turnaround from their view towards Bitcoin, shifting to a bullish viewpoint in the medium and long-term.
Payment processing giant Paypal has been taking vital steps to adopt cryptocurrencies inside their portfolio, as they declared on October 21, 2020, the official support of Bitcoin (BTC), Ethereum (ETH), bitcoin cash (BCH), and litecoin (LTC).
Throughout an earnings call held on November 2, 2020, PayPal’s CEO Dan Schulman announced plans such as increased crypto-asset purchasing limits.
Another big bank moving to a bullish view on BTC is Deutsche Bank, which claimed that “more investors are starting to see it emerge as a credible asset to invest in,” where gold is used to hedge dollar risk and inflation.
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