New York’s S&P Dow Jones indices has simultaneously launched five cryptocurrency based market indexes that will track cryptocurrencies based on market capitalization.
The world’s leading index provider announced the launch of the new S&P Cryptocurrency Broad Digital Market (BDM) Index earlier today. The BDM Index which will include more than 240 coins at launch will provide a wide performance snapshot of the cryptocurrency market.
The other new indices being added include;
- S&P Cryptocurrency LargeCap Index : This is a subset of the BDM that will measure the performance of the constituents with the largest market capitalization.
- S&P Cryptocurrency BDM Ex-MegaCap Index : This is another subset of the BDM that excludes the constituents of the S&P Cryptocurrency MegaCap Index (Bitcoin and Ethereum).
- S&P Cryptocurrency BDM Ex-LargeCap Index : This is a subset of the BDM that excludes constituents of the S&P Cryptocurrency LargeCap Index.
- S&P Cryptocurrency LargeCap Ex-MegaCap Index : This is a subset of the BDM that measures the performance of the constituents of the S&P Cryptocurrency LargeCap Index, excluding the constituents of the S&P Cryptocurrency MegaCap Index.
The indices will use pricing data from Lukka, a crypto software and data provider, to determin the eligibility universe and pricing of individual constituents.
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Speaking on the launch, Peter Roffman, Global Head of Innovation and Startegy at S&P Dow Jones Indices said;
“For more than a century, our indices have offered insight into how the markets are performing. Now, with the introduction of the S&P Cryptocurrency Broad Digital Market Index, we’re providing that answer to cryptocurrency investors.
“The expansion of our Digital Market Indices family gives one of the broadest snapshots yet of this rapidly growing asset class with the ability to slice and dice by market cap. We’re excited to bring this significant level of additional transparency to the cryptocurrency market.”
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®.
Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur