The S&P Dow Jones has launched new cryptocurrency Broad Digital Market Index and also four other benchmarks that track cryptocurrencies based on market capitalization value.
S&P Dow Jones Indices, the world’s largest index provider, has introduced a new cryptocurrency index that analyzes the performance of the broader digital asset sector.
At the debut, the S&P Cryptocurrency Broad Digital Market Index, or BDM, measures more than 240 digital assets, expanding on the firm’s recently launched crypto benchmarks.
Aside from BDM, the business also unveiled four other crypto-focused indexes on Tuesday, each of which tracks different aspects of the broad digital market benchmark. These are some of them:
- S&P Cryptocurrency LargeCap Index
- S&P Cryptocurrency BDM Ex-MegaCap Index
- S&P Cryptocurrency BDM Ex-LargeCap Index
- S&P Cryptocurrency LargeCap Ex-MegaCap Index
To calculate the composition of each benchmark, all of the indexes rely on pricing data from Lukka, a crypto-focused data supplier.
“With the option to slice and dice by market cap, the extension of our Digital Market Indices family provides one of the largest pictures yet of this fast-rising asset class,” said Peter Roffman, global head of innovation and strategy at S&P Dow Jones Indices.
In December 2020, S&P Dow Jones Indices announced its intention to track cryptocurrency prices for the first time. Bitcoin and Ether price indexes first appeared in May of this year.
Dow Jones Indices gives the burgeoning digital asset market a new level of legitimacy by recognizing cryptocurrencies and establishing pricing benchmarks for investors to use.
For many cryptocurrency investors, increased Wall Street acceptance might catapult the sector to new highs in terms of adoption and valuation.
