S&P Dow Jones Announces Launch Of Crypto Broad Digital Market Index

S&P Dow Jones announces the launch of the crypto broad digital market index along with five new indices that will track over 240 coins. The indices join legacy financial indicators that were paramount in the traditional markets like the S&P 500 and the Dow Jones Industrial Average so let’s read more in our latest cryptocurrency news today.

The focal point of the five new indices is the S&P crypto broad market digital index that will provide a broad snapshot of the market and the index will track 240 coins at launch. At present time, there are 275 cryptocurrencies with a market cap bigger than $100MM. However, the S&P Dow Jones hasn’t disclosed if the market cap will dictate the selection criteria for the BDM index. The S&P Dow Jones only expressed intent to track crypto prices in December 2020 and debuted ETH and BTC price tracking indices a few months ago. The remaining four indices are BDM derivatives that include a crypto LargeCap index which is a BDM subset that hones in on the coins with largest market caps, Crypto BDM exMegaCap Index excluding BTC and ETH, crypto BDM Ex-large-cap index, and another one that includes the aforementioned LargeCap index excluding the established MegaCap index.

The indices join the ranks of early digital asset benchmarks established by S&P Dow Jones like the S&P Bitcoin index, S&P CryptoMegaCap Index, and S&P Ethereum index. The indices will pull pricing data from their established crypto partner Lukka which is an enterprise-grade crypto software provider. The increasing indices around crypto reflect a clear growth in consumer demand that needs to be addressed. According to the press release:

 “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.”

Global Head of Innovation and Strategy at S&P Dow Jones Indices Peter Roffman stated in the release that the indices offered insight into how the markets are performing:

“Now… we’re providing that answer to cryptocurrency investors as  indices 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.”