S&P Dow Jones Indices announced the debut of five new cryptocurrency indices on Tuesday, bringing their total number to eight.
July 14, 2021, | AtoZ Markets – One of the world’s leading index providers, S&P Dow Jones, has announced the launch of five new cryptocurrency indices designed to track the performance of the digital asset market more effectively.
The main add-on, the S&P Cryptocurrency Broad Digital Market Index (BDM), is able to track nearly 250 digital assets from day one. BDM is the next step in the previously launched S&P Dow Jones cryptocurrency benchmarks.
While the Broad Digital Market Index is the highlight of this latest launch, four other cryptocurrency-focused indices also launched on Tuesday. Each one aims to track the different elements of the broad digital benchmark marketplace.
The four additional indexes are: S&P Cryptocurrency BDM-Ex-LargeCap Index, S&P Cryptocurrency BDM Ex-MegaCap Index, S&P Cryptocurrency LargeCap Index, and S&P Cryptocurrency LargeCap Ex-MegaCap Index. Each of them relies on the cryptocurrency data provider Lucca. It is with its help that the composition of each benchmark is determined.
Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices said,
“For over a hundred years, our indices have provided insight into how markets perform. Now, with the introduction of the S&P Cryptocurrency Broad Digital Market Index, we are delivering that answer to cryptocurrency investors.”
Roffman goes on to say that the most recent expansion “provides one of the broadest views to date of this rapidly growing asset class, with the ability to break down by market capitalization.”
New S&P Dow Jones indices
Diving a little deeper into the new indices announced yesterday, each is part of the company’s digital asset benchmark expansion, S&P Digital Market Indices. According to the press release, each index has a different but important function. The LargeCap Index functions as a subset of the BDM that measures the performance of the users with the highest market capitalization.
The BDM Ex-MegaCap Index is also a subset of the BDM but does not include the components of the MegaCap Index (BTC and ETH). The Ex-LargeCap index does not include the LargeCap index components, and the entire Ex-MegaCap index measures the performance of the LargeCap index components but does not include the MegaCap index components.
Each of these new indices joins the existing benchmarks that currently make up the Digital Market Indices, namely the S&P Bitcoin Index, S&P Ethereum Index, and the S&P Cryptocurrency MegaCap Index.
Think we missed something? Let us know in the comment section below.