The crypto community is celebrating another great news from the industry as S&P Dow Jones Indices (SPDJI), the world’s leading stock market index provider, is eyeing to launch global cryptocurrency Indices by the next year by leveraging the services of New York City-based crypto-asset software and data company Lukka.
S&P Dow Jones Indices, a division of S&P Global, announced the news in a press release on Thursday, December 3rd. According to the announcement, the index provider will soon launch customized index capabilities by using data from Lukka’s proprietary crypto asset pricing data services, such as Lukka Reference Data and Lukka Prime, that provide a single price for crypto assets based on information from several exchanges, over-the-counter trading desks, and wallets.
This customizable crypto index will allow S&P clients to create customized indices and other benchmarking tools on cryptocurrencies and enable asset management firms to build their own investment vehicles, such as exchange-traded products.
By the next year, the firm will also launch its own S&P DJI-branded crypto index, just like the S&P 500 stock market index but for this time for the crypto market.
Both financial data provider firms believe that a global crypto index will help cryptocurrencies become more mainstream investments and make it easier for “investors to access this emerging technology-driven asset class while potentially mitigating some of the common risks associated with this traditionally speculative market.”
Robert Materazzi, CEO of Lukka, believes that:
“Our collaboration with S&P DJI is yet another milestone that bridges the gap between the crypto asset ecosystem and traditional financial services. Customers with crypto data requirements will soon have access to the most trusted data in the industry underpinned by Lukka’s institutional-quality standards, such as AICPA SOC Controls. In a rapidly maturing industry, it is paramount to build to institutional standards when working with highly respected brands, such as S&P DJI. Lukka is thrilled to help drive ongoing innovation in collaboration with S&P DJI.”
S&P DJI is not the first financial firm to enter this nascent asset class. Global stock exchange operator NASDAQ, in collaboration with Brazilian fund manager Hashdex, launched the ‘Hashdex Nasdaq Crypto Index’ in September 2020.
Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices, commented:
“For more than a century, S&P Dow Jones Indices has been a pioneer in creating innovative and relevant indices and benchmarks that reflect the global market’s ongoing growth and evolution. With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable, and user-friendly benchmarks. We’re excited to work with Lukka, who has been at the forefront of digital asset data services, to promote more transparency in this nascent sector.”
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