S&P Dow Jones Indices announced on Thursday that it will be launching its own cryptocurrency indexes. The new products will reportedly go live in 2021.
Crypto has already received notable mainstream attention in 2020, however, the S&P move will likely bring more legitimacy to the emerging asset class.
Cryptocurrency Indexes Coming to S&P Dow Jones Indices in 2021
S&P Dow Jones Indices is a division of the financial data provider S&P Global Inc. The new products will reportedly feature more than 550 of the highest-ranked crypto assets by market cap.
The company will draw data from Lukka, a New York-based digital currency company. S&P clients will be able to create custom indices on digital assets, the two companies said in a joint release via Reuters.
Wall Street will buy your bags. Not a meme after all. https://t.co/CQ0YKXIFRm— Alex Krüger (@krugermacro) December 3, 2020
S&P and Lukka believe that more accurate pricing, enabled by the new products, will help alleviate some of the risks associated with the cryptocurrency market. This may make the emerging asset class more accessible to additional mainstream investors.
More Mainstream Attention for Crypto?
The S&P announcement is just the latest in a string of developments that appears to be bringing cryptocurrency closer to the mainstream this year.
Similarly, major payments platform PayPal announced support of cryptocurrency services in October. Such developments have inspired interest among major financial institutions too, among them being JP Morgan, Deutsche Bank, and Citibank.