Traders will soon be able to track the performance of the world’s two biggest cryptocurrencies on Wall Street, as the S&P Dow Jones Indices announced several crypto indexes.
Two indexes are being launched to track the individual performance of bitcoin and ether, while a third, the S&P Cryptocurrency MegaCap Index, will measure the performance of bitcoin and ether combined.
Later this year the S&P Digital Market Indices series will be expanded to include additional coins and broader-based indices such as large cap and broad market benchmarks, which could mean dogecoin is on its way to the street.
The meme coin is currently the fourth largest cryptocurrency by market capitalisation, after a social media push bounced its price more than 13,590% this year.
The indexes will use pricing data from crypto software provider Lukka.
S&P DJI said access to cryptocurrencies for investors is “more essential than ever” to meet demand. It added that the launch of such indexes may aid Wall Street in “potentially mitigating some of the common risks associated with this traditionally speculative market”.
“Traditional financial markets and digital assets are no longer mutually exclusive markets,” said Peter Roffman, global head of innovation and strategy at S&P DJI.
“As cryptocurrency becomes more mainstream, investors now have access to reliable and transparent benchmarks backed by institutional quality pricing data. We look forward to further expanding our new family of digital market indices and bringing much needed transparency to this exciting market.”
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