S&P Dow Jones Indices (S&P DJI), a division of US market index provider S&P Global, announced that it will launch 550 cryptocurrency indices in 2021.
The data provider will be Lukka, a New York-based digital currency company. S&P DJI’s director of strategic development and innovation, Peter Roffman, said the initiative would make it easier for investors to access cryptocurrencies as an asset class. This can partially reduce the volatility of the cryptocurrency market and reduce the associated risks.
“The digital currency industry is developing rapidly. Now is the time to create robust and independent user-centric mechanisms, ”Roffman said.
The indices will track about 550 digital assets with the best market cap indicators. Lukka CEO Robert Materazzi added that the partnership with S&P DJI is an important milestone that will bring together the cryptoasset ecosystem with traditional financial services.
In order to drive innovation, he said, it is critical to meet institutional standards when working with established brands such as S&P DJI. Therefore, customers will receive data whose reliability is backed by the Lukka quality standard – AICPA SOC Controls.
Recall that in 2018 Galaxy Digital Capital Management LP, together with Bloomberg, launched the Bloomberg Galaxy Crypto Index (BGCI), which tracks the 10 most liquid cryptocurrencies. In addition, a few months ago, the Nasdaq exchange and Brazilian wealth management company Hashdex announced plans to launch the world’s first tradable exchange-traded fund (ETF) on Bitcoin.