One of the main providers of financial indexes in the world, the S&P Dow Jones Indices (S&P DJI), launched on Tuesday, July 13, five new products aimed at bitcoin (BTC), the largest crypto asset on the market, and other cryptocurrencies.
The most outstanding index among those presented by S&P DJI is the called S&P Cryptocurrency Broad Digital Market (BDM). This is responsible for providing extensive monitoring of the performance of 240 cryptocurrencies.
The four other indices are part of a subset of the new BDM. They are S&P Cryptocurrency LargeCap, S&P Cryptocurrency BDM Ex-MegaCap, S&P Cryptocurrency BDM Ex-LargeCap, S&P Cryptocurrency LargeCap Ex-MegaCap Index.
These indices are responsible for combining the crypto assets in the basket in different ways.
It is worth remembering that the S&P DJI cryptocurrency index is based on Lukka company data, provider of cryptocurrency price data based in New York, United States.
Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices, said the new digital market indices “offer one of the broadest views for this fast-growing asset class with the ability to split and divide by market capitalization. ».
In total, the financial company has eight indexes focused on cryptocurrencies. The rest were also activated last May and are the S&P Bitcoin Index (SPBTC), based on bitcoin and the S&P Ethereum Index (SPETH).
Popularity of bitcoin and cryptocurrencies
The expansion of S&P DJI to the cryptoassets market was announced in December 2020, by the growing popularity of cryptocurrencies that has aroused more and more interest from investors, as reported by CriptoNoticias.
“The cryptocurrency market continues to grow, and with that, transparent benchmarking and index-based solutions based on cryptocurrency and blockchain assets are more essential than ever,” the financial index provider highlights.
It is important to note that an index such as the ones presented here is a calculated average prices of selected crypto assets. The collective performance of these assets provides a good indication of the trends in the global market that they represent, according to the financial company IG.