We look forward to further expanding our new family of Digital Market Indices and bringing much needed transparency to this exciting market.”
In addition to the new S&P Digital Market Indices, S&P DJI also launched customized cryptocurrency indexing solutions at the end of last year. Since then in the first quarter of 2021, IDX Insights launched a series of risk-managed custom cryptocurrency indices – the first based on S&P DJI’s custom cryptocurrency indexing capabilities.
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world.
S&p crypto index list
Digital assets company Securitize has unveiled two tokenized funds in partnership with S&P Dow Jones Indices, the world’s leading index provider.
Securitize Launches Tokenized Index Funds
Two tokenized funds that will track S&P indices have been launched.
In a blog post, Securitize, a digital asset securities company, announced partnering with S&P Dow Jones Indices to tokenize two of its investment indices: theCryptocurrency Large Cap Ex-MegaCap Index, and theKensho New Economies Composite Index.
While the S&P Cryptocurrency Large Cap tracks 30 different cryptocurrencies, the S&P Kensho New Economies fund allows investors to gain exposure to emerging technology sectors such as artificial intelligence, virtual reality, fintech, and nanotechnology.
S&p crypto index list
The cryptocurrency market is unique: volatile with frequently changing market structure where new cryptocurrencies emerge and vanish daily. Following market developments becomes a challenge.
As cryptocurrencies became an investable asset class, a need for an index product emerged.
Some currency indices already exist. Fiat currency markets have SDR offered by the IMF. Prior to the launch of EUR, the ECU existed, which was an index representing the development of European currencies.
Typically, index providers decide on a fixed number of constituents to represent the market. It is usually a challenge to agree on a fixed set of constituents and rules.
S&p crypto index list-disks
S&P Digital Market Indices. These new S&P-branded indices will measure the performance of digital assets listed on recognized open cryptocurrency exchanges.
At launch, the index series includes the following:
- S&P Bitcoin Index – measures the performance of Bitcoin.
- S&P Ethereum Index – measures the performance of Ethereum.
- S&P Cryptocurrency MegaCap Index – measures the performance of Bitcoin and Ethereum digital assets.
Later this year, the S&P Digital Market Indices series will include additional coins and broader-based indices such as large cap and broad market benchmarks.
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 crypto index lista
That figure hovered around 2,676 at press time, down 14% for the month of July.
For comparison, S&P’s bitcoin tracker showed it down 450.86 points, or 11.5%, in the same time period.
BDM certainly featured bitcoin and its end-of-June market cap of over $650 billion. But the index, whose average market cap was $4.8 billion according to S&P, largely consisted of small- and mid-cap cryptos whose stories are unknown to the average banker.
One such token is skycoin, a $15 million small-cap with about $387,000 in trading volume. CoinGecko ranked it in the 660 neighborhood by valuation.
In November 2018, now-deceased crypto iconoclast John McAfee had the coin’s logo tattooed on his back.
That might be a result of S&P’s inclusion policies.
S&p crypto index listener
This article is reprinted from the Indexology blog of S&P Dow Jones Indices.
For us at S&P DJI, this is an exciting time because this new asset class is bringing unprecedented change to our financial ecosystem and the mindsets of market participants.
The cryptocurrency space is unlike traditional financial markets, and certainly unlike the ones we have benchmarked at S&P DJI over the last 100 years. Living mainly within the realm of technology, cryptocurrencies like Bitcoin are beyond the realm of traditional currencies, securities, commodities, and physical assets. They are new, evolving, and not controlled by governments, although their use is regulated in various jurisdictions.
Instead, they’re decentralized, meaning that no one entity can fully control or halt the use of these currencies.
Structurally, these cryptocurrencies are creating their own new, evolving, decentralized markets. Enormous value is now being transacted in dozens of exchanges where there are no traditional market makers.
But along with opportunities, this asset class comes with a host of new challenges. As an emerging space, one of the biggest issues is a lack of transparency.
Our cryptocurrency indices seek to address some of the challenges the industry is currently facing, including the issue of transparency.
The index company’s Broad Digital Market tracker dives deep – very deep – into the digital asset universe, CoinDesk found.
Dogecoin is out; bitcoin diamond is in. So go the rules of the S&P’s new benchmark for the crypto sector.
CoinDesk obtained a list of the 243 digital assets in the S&P Cryptocurrency Broad Digital Market (BDM) Index. A cursory analysis found that Wall Street’s latest attempt to measure returns from the “broad investable universe” ventured to crypto’s outermost rings.
An eclectic mix of name-brand blockchains and lesser-known protocols are included in S&P’s BDM.
Weighted according to the index-maker’s rulebook, the coins’ collective returns crunch down to a point-based performance figure.
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, investor demand for benchmarking and index-based solutions based on crypto and blockchain assets is 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.
“Traditional financial markets and digital assets are no longer mutually exclusive markets,” said Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices. “As cryptocurrency becomes more mainstream, investors now have access to reliable and transparent benchmarks backed by institutional quality pricing data.
The newly-launched products will be provided through Securitize’s digital asset management arm, Securitize Capital, and offered to accredited investors only. In a Wednesday press release, Securitize said it used Algorand, a Proof-of-Stake blockchain, as the underlying network for tokenizing the funds. When asked why the team chose to launch on Algorand, Jamie Finn, co-founder and president of Securitize, told Crypto Briefing:
“We have a great relationship with Algorand and issued the largest-ever Reg A+ capital raise on their chain, so when we decided to launch these exclusive funds tracking two of S&P’s most innovative indices, Algorand was the natural choice due to its speed and cost efficiency.”
This is is the first time fully-regulated investment products tracking S&P index funds are being offered as tokens.
New York-based cryptocurrency data firm Lukka provided the “world’s first fair market value-focused” pricing methodology to price the S&P indexes.
This method of valuation is designed to align the crypto ecosystem to GAAP and IFRS guidelines, according to the indexes’ methodology document.
Why It Matters: Since the indexes measure price appreciation and not the current price of the underlying asset, comparing the two indices helps traders make an easy assessment of the better-performing asset over time.
For instance, at the time of writing the index showed that Bitcoin’s return over a one-year period was 558% as opposed to Ethereum’s one-year return, which was 1,477%.
“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable, and user-friendly benchmarks.
In the crypto space, tokenized indices already exist but operate outside regulatory oversight.
Scott Harrigan, CEO of Securitize believes the latest launch that may lead to a wave of tokenized funds in the future and further boost institutional blockchain adoption. Discussing the launch of the tokenized funds, Harrigan said:
“S&P DJI’s innovation and leadership in tokenizing its indices is a major sign that institutions understand the many advantages of tokenization—from efficiency to easier investor access and, I anticipate will be the start of a wave of tokenized funds over the coming months.”
Before the product launch, Securitize teamed with Anchorage Digital, a crypto services firm that will give custody services.