If you are concerned that crypto isn’t here to stay, then this is for you.
S&P Dow Jones have launched five new crypto indices according to new reports. The new indices will track the performance of 240 crypto coins and assets.
The good news isn’t simply in the adoption of crypto, but rather in what it can do for the market.
Indices revolutionized stock investing, and folks like Jack Bogle made stock investing a viable, and automated path for the average American to invest into broad market index funds.
Gone were the days of mulling over annual reports, balance sheets, and income statements trying to pick the few rare winners out of thousands of stocks.
Crypto indices can do the same thing for digital assets, and probably have a higher yield than the 7-8% we have come to expect from broad based stock market indices like VTSAX or VTI.
The days of combing through white-papers, news releases, ICO documents, and team fundamentals may soon be over for the average crypto investor, and it may even open up digital finance to the masses.
Here’s what the crypto world is reporting:
S&P Dow Jones Indices, the world’s leading index provider, announced today the launch of its latest crypto indices including the new S&P Cryptocurrency Broad Digital Market Index which includes more than 240 coins. pic.twitter.com/nQbTgQLELA
— Bloqport (@Bloqport) July 13, 2021
— Crypto Craft (@CryptoCraft) July 13, 2021
Coin Telegraph gave us an excellent summary:
The S&P Cryptocurrency Broad Digital Market Index, labelled BDM, tracks more than 240 digital assets at launch and represents an expansion of the firm’s recently launched crypto benchmarks.
In addition to BDM, the company also launched four other crypto-focused indexes on Tuesday, each tracking various components of the broad digital market benchmark. These include:
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
All the indexes rely on pricing information from Lukka, a crypto-focused data provider, to determine the composition of each respective benchmark.
I sure enough did not see this coming. 🍷
While the noobs are whining about pricing and selling the bottom, the big big boys are clearly bullish.
S&P Dow Jones Indices Launches S&P Cryptocurrency Broad Digital Market Index https://t.co/5gnUEwLETQ
— Pearce A. Rowe 🪙 (@MoriaCrypto) July 13, 2021
The BDM provides a wide performance snapshot of the cryptocurrency market and includes more than 240 coins at launch.
— CryptoDiffer (@CryptoDiffer) July 13, 2021
PRS Newswire had the official press release:
The indices use pricing data from Lukka, a crypto software and data provider, to determine the eligibility universe and pricing of individual constituents. S&P DJI’s Index Committee administers the indices. S&P DJI first announced new cryptocurrency asset index capabilities with Lukka in December 2020.
The market for cryptocurrency assets continues to grow and with that, transparent benchmarking and index-based solutions based on crypto and blockchain assets are more essential than ever. The Digital Market Indices will make it easier for investors to access and assess this emerging technology-driven asset class while potentially mitigating some of the common risks associated with this traditionally speculative market.
“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,” said Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices. “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.”