S&P Dow Jones launches three indices for Bitcoin and Ethereum

Index provider S&P Dow Jones Indices LLC put three cryptocurrency indices into operation on Monday to create transparency in the emerging crypto market. The primary purpose of these indices is to measure the performance of crypto assets listed on recognized and other open exchanges.

The S&P indices will compete with Bloomberg’s crypto indices, which measure the performance of the largest digital assets traded in the US dollar.

This move by S&P is a step towards wider adoption of cryptocurrencies by various large global companies. It’s getting more and more into play as companies like Tesla, MasterCard, MicroStrategy, Apple, and PayPal added Bitcoin to their ecosystem earlier this year.

The index provider announced last year that it would launch cryptocurrency indices in 2021. Therefore, up to 550 digital assets are covered.

The S & P Bitcoin (SPBTC) and S & P Ethereum (SPETH) indices will track the performance of the world’s largest and second largest digital assets. The S&P Cryptocurrency MegaCap (SPCMC) captures both digital currencies with market capitalization.

The values ​​for the MegaCap indices S & P Bitcoin, S & P Ethereum and S & P Cryptocurrency were 7678.3, 29405.14 and 5895.79 as of May 3, 2021. Lukka. It is backed by the parent company of S&P Dow Jones and S&P Global.

The S&P Dow Jones indices use the Lukka Prime Fair Market Value price to calculate the cryptocurrency index. Lukka’s methodology evaluates fair value pricing for liquid cryptocurrency assets.

In the FAQ sections of the indices, S&P said, “LukkaPrime Fair Market Value Pricing uses a proprietary method to determine the primary exchange of any digital asset at any given point in time, which in turn determines the fair market value of that asset.”

The S&P Dow Jones announcement comes amid the standout run watched in cryptocurrencies. Just as Bitcoin jumped over 100% in four months of the year, Ethereum also rose four times during that period. On Tuesday, Ethereum was trading at its new lifetime high near $ 3,447.

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