S&P Dow Jones Indices has released three new crypto indices – the S&P Bitcoin Index, the S&P Ethereum Index, and the S&P Crypto Mega Cap Index (which is a combination of Bitcoin and Ethereum). This will offer retail traders better exposure to the two crypto leaders.
Of course, the crypto community has been waiting for a traditional finance product that keeps track of crypto prices for the longest time. In 2020, S&P made the announcement that a crypto index would come this year, and, indeed, here it is!
The new indices can be used as tracking and benchmarking tools in the legacy finance world, and since there is reliable pricing from an authoritative source, investors won’t have to make contact with potentially dangerous crypto APIs that could give them wrong pricing data.
The company S&P believes that this change will make it safer and easier for investors to access crypto asset classes.
The indices rely on data from Lukka, a crypto data provider. Lukka is in charge of screening several digital exchanges on the basis of transparency, data integrity, and other factors in order to decide if they are included in the final price weightage.
Source: CryptoPotato.com