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 reported initially on December 3, 2020, such indexes will measure the performance of over 550 top traded crypto by market cap, including bitcoin, and they will use data from the New York-based company Lukka.
According to the statement issued by both companies, S&P’s clients could create customized indexes, among other benchmarking tools on cryptocurrencies. Peter Roffman, global head of Innovation and Strategy at S&P Dow Jones Indices, told Reuters:
With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable, and user-friendly benchmarks.
Both parties also mentioned in the joint statement that they expect cryptocurrencies to achieve the status of “mainstream investments” with the indexes’ launching in 2021.
Larger financial institutions have been flirting with the crypto sphere, such as JP Morgan, who has been showing a surprising turnaround from their view towards Bitcoin, shifting to a bullish view in the medium and long-term.
Also, payment processing giant Paypal has been taking significant steps to adopt cryptocurrencies within their portfolio, as they announced on October 21, 2020, the official support of bitcoin (BTC), ethereum (ETH), bitcoin cash (BCH), and litecoin (LTC).
During an earnings call held on November 2, 2020, PayPal’s CEO Dan Schulman revealed plans such as increased crypto-asset purchasing limits.
Another big bank shifting to a bullish view on BTC is Deutsche Bank, which argued 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.
What do you think about this announcement? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons