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S&P Dow Jones Launches New Crypto Indexes on Wall Street

S&P Dow Jones launches five additional crypto indexes to the Wall Street trading floors. It brought in three crypto indexes in May, taking the total to eight.

S&P Dow Jones with Crypto Indexes

The additional crypto coin indexes launched by S&P Dow Jones on Wall Street are S&P Cryptocurrency Broad Digital Market, LargeCap Index, BDM Ex-MegaCap Index, BDM Ex-LargeCap Index, and LargeCap Ex-MegaCap Index. Data for the index will come from Lukka, a New York-based virtual currency company.

Investors and financial institutions make use of the index data available to analyze global markets. Live forums, educational videos, and interactive tools are beneficial for experienced traders and newbies in the crypto exchange. Just know the basics before making use of these facilities.

S&P Dow Jones is a part of S&P Global. It provides investors and traders information on financial market indices.

S&P is Standard and Poor’s 500 in the US, which keeps track of 500 public traded companies. It has the financial market indexes, such as the S&P 500 and Dow Jones Industrial Averages.

Eight Indexes at S&P Dow Jones

In December 2020, the company announced that it would include around 550 coins. Clients can create customized indices on cryptocurrencies.

The S&P Dow Jones launched three cryptocurrency indexes in May 2021.

Once again, S&P Dow Jones adds five more indexes, taking the total number of cryptocurrencies launched to eight. There are plans to add additional coins, states S&P Global, financial data providing division.

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The S&P Cryptocurrency BDM, BDM-Ex-LargeCap Index,  LargeCap Ex MegaCap Index, BDM Ex-MegaCap Index, and LargeCap Index are the additional indexes made on S&P Dow Jones Cryptocurrency indexes o. BDM is the main addition made on S&P Dow Jones.

The indexes on the S&P Dow Jones keep track of the various components of the digital market benchmark. The digital asset class is gaining growth with a massive market cap. Each index has vital features required for trading and investing purposes on the cryptocurrency exchange.

The first three indexes introduced in May 2021 were S&P Bitcoin Index, S&P Ethereum Index, and S&P Crypto MegaCap Index.  These indexes will measure the performance of the cryptocurrencies tied to them.

S&P Bitcoin Index monitors the movement of Bitcoin, while S&P Ethereum Index keeps track of the price performance of Ethereum. The S&P MegaCap Index keeps track of the performance of the digital assets weighted by market capitalization.

Cryptocurrency Rally in 2021

Bitcoin and other top cryptocurrencies have seen a strong rally in 2021. Apart from listing on the S&P Dow Jones, they have exposure from big corporates too.  Big companies like Tesla, Visa, and PayPal have contributed to the rally in crypto prices this year. These companies accept crypto as payment. Big tech companies to airlines are embracing cryptocurrencies for payments. People use crypto currencies to make payments for their goods and services. The highly volatile crypto market has brought the prices of Bitcoin, Ethereum, and Litecoin to new highs. Bitcoin has gone up 300% year on year, while Ethereum has soared almost 700%.

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To trade or invest in Bitcoin or another cryptocurrency of your choice, you have to choose the best cryptocurrency exchange that can keep your crypto tokens safe. Connect your crypto exchange to your account. Place an order and buy your crypto. Store the crypto safe in a wallet in case you purchase them for investment purposes.

Cryptocurrencies most traded are Bitcoin, Ethereum, Cardano, Litecoin, Binance Coin, XRP, and Dogecoin. Though digital assets are highly volatile assets that come with high risk, they are highly rewarding assets. The crypto market is gaining increasing popularity for its acceptance as payment for apps, games, and other platforms like Xbox and Windows Phone.

Traditional financial markets are not mutually exclusive of digital assets, says the S&P Dow Jones Indices Head of Innovation and Strategy, Peter Roffman.

Coinbase was the first to enter direct listing on the US market, the Nasdaq, but with the launch of the three indices, the crypto market has made another major leap to gain entry into mainstream adoption.

Coinbase is the largest US cryptocurrency exchange that has a wide range of cryptocurrencies. You can purchase, sell and trade crypto on the crypto exchange.

El Salvador was the first country to adopt Bitcoin as a national currency in September 2021.

The Unregulated Crypto Market

Cryptocurrencies are gaining attention with more investors entering the crypto market, but it still remains a speculative investment.

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It is an unregulated market that is still in its development phase. The crypto market requires a transparent benchmark for digital assets. It will make it easy for investors to assess the digital asset class. There are many risks associated with digital assets, and the crypto market requires additional regulations and monitoring.

Bitcoin rallied to $64,000 in April 2021. In September, $52,300 is the highest level reached on September 5, 2021. Currently, it is trading at $43,000 levels.

Ethereum prices touched a high of $4,120 on May 11, 2021. It is trading at $2,956 during trading hours on September 30, 2021.

 

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