S&P Dow Jones Indices has made it official: they will launch cryptocurrency indexes in 2021 and become the latest major finance company to enter the digital assets industry.
More than 550 of the best-traded coins are included in the indexes
Like Reuters reported Initially on December 3, 2020, such indexes will measure the performance of more than 550 top-traded cryptocurrencies by market cap, including bitcoin, and will use data from New York-based company Lukka.
According to the statement of both companies, S & P’s clients could create custom indexes, in addition to other cryptocurrency benchmarking tools. Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices, told Reuters:
With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and easy-to-use benchmarks.
Both parties also stated in the joint statement that they expect cryptocurrencies to reach ‘regular investment’ status with the launch of the indexes in 2021.
Larger financial institutions are flirting with the crypto sphere, such as JP Morgan, who showed a surprising turnaround in their view of Bitcoin. shift towards an optimistic picture in the medium and long term.
Also, payment processing giant Paypal has taken significant steps to adopt cryptocurrencies in their portfolio, as they announced on October 21, 2020, the official backing of bitcoin (BTC), ethereum (ETH), bitcoin cash (BCH), and litecoin (LTC).
During an earnings call detained On November 2, 2020, PayPal’s CEO Dan Schulman revealed plans such as increased purchase limits for crypto assets.
Another major bank is shifting to an optimistic view BTC is Deutsche Bank, which argued that “more investors are starting to see it as a credible asset to invest in,” where gold is used to hedge dollar risk and inflation.
What do you think of this announcement? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons