on the crypto
S&P Dow Jones Indices (S&P DJI), a leading financial data provider, said a few days ago that it will launch an indexing service for cryptocurrencies in partnership with crypto data provider Lukka, in 2021.
Bitcoin lands on Wall Street
The new product is set to become a hub for cryptocurrency price data at a time when cryptocurrencies are becoming increasingly popular for cryptocurrencies. Investors of Wall Street. This year's bull run is said to be led by institutions aiming for exposure to bitcoin (BTC).
"We have observed the space of digital resources and we believe that it is in a phase of development of institutional interest, in which companies like ours want to enter and contribute to the transparency of the market", said Peter Roffman, head of the innovation sector. and S&P Dow Jones Indices strategy. Growing investor interest "has reinforced the need for reliable price data," S&P DJI said in a press release.
A new level of quality for crypto indices
Wall Street already had its share of crypto indices to choose from. The Bloomberg Galaxy Crypto Index has been providing quotes on highly liquid cryptocurrencies since 2018. Nasdaq, the high-tech exchange, has listed several crypto indices in recent years.
Roffman declined to specify how the S & P / Lukka crypto indices would rank relative to their competitors. But he also said that the "institutional quality" of the partners will combine for a "market leading offering".
“It will really employ best practices, both in terms of coin price, coin selection, weighting, and all the associated transparency that we bring to the market,” he said. Lukka CEO Robert Materazzi said his company's 'Lukka Prime' pricing methodology "is part of our relationship with S&P."
S&P Dow Jones Indices intends to capitalize on the crypto sector?
While the product represents S&P's entry into cryptocurrency indexing, a number of factors suggest that the company is positioning itself to capitalize even more on the blockchain and cryptocurrency space.
Parent company S&P Global has hired several blockchain engineers over the past few months. Also noteworthy is the planned acquisition by S&P of the competitor IHS Markit for 44 billion dollars.
If the deal overrides antitrust regulators, it would turn S&P into the undisputed data giant of Wall Street. Additionally, it would link S&P to Lukka with IHS Markit. In mid-November, Lukka agreed to offer crypto data to Street via IHS. Executives from both companies were reluctant to outline the full scope of such an offer at the time. Raymond McConville, spokesperson for S&P DJI, declined to comment on the announced merger of S&P Global with IHS Markit.
