S&P Dow Jones Will Add Crypto Indices Starting 2021

S&P Dow Jones indices made the decision to add crypto indices in 2021 in an announcement a few days after Bitcoin broke the new all-time price level as we reported in the latest BTC news.

S&P Dow Jones Indices announced today that it will launch crypto indices in 2021 and the products based under this index will reportedly use data from Lukka, a New-York based virtual currency company on about 550 of the top traded coins. The move could make it easier for investors to access crypto assets as an asset class which could reduce some of the volatility seen on the crypto market today. Peter Roffman, the global head of innovation and strategy at S&P Dow Jones indices said:

“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks.”

The news came after a few days since BTC broke a new all-time high price on November 30 and after the wave of mainstream financial names like PayPal, Square and Microstrategy as they became increasingly involved in the crypto space. As reported previously, Microstrategy outperformed Nasdaq after its $175 million Bitcoin foray suggesting that the asset class is luring in more traditional investors. Microstrategy made its second BTC purchase and pushed the total cash holdings to more than $425 million.

The company’s stocks increased by more than 9.3% after the news emerged so the investors responded as well and this could indicate a positive sentiment towards crypto assets. Microstrategy outperformed Nasdaq as the stocks increased by more than 9 percent and their CEO revealed the company purchase another $175 million in BTC. The investment makes up the part of the company’s strategy to diversify into crypto. The leading US-based exchange Coinbase was involved in the Microstrategy purchase of $425 million worth of BTC and the platform also pledged to help other bigger companies to diversify their portfolios in BTC in the near future as well.

Also, The Financial TV Channel Real Vision invests 10% of its cash holdings into BTC while Raoul Pal invested 98% of its liquid assets into both ETH and BTC. The company invested 10% of its cash holdings in BTC around three months ago according to the CEO. The company joined the list of companies that invested in the number one cryptocurrency including Microstrategy and Jack Dorsey’s Square app.