S&P Dow Jones Indices has launched three indices related to cryptocurrencies and specifically to Bitcoin, Ethereum and one that combines both. These are:
- S&P Bitcoin Index, to track the performance of Bitcoin,
- S&P Ethereum Index, to track the performance of Ethereum,
- S&P Crypto MegaCap Index, to track the performance of Bitcoin and Ethereum weighted by market capitalization.
According to official documents, they are part of the S&P Cryptocurrency Index Series.
Providing the data that will become part of the indices is Lukka Inc, via Lukka Prime and Lukka Reference Data. This is the leading provider of cryptocurrency data for institutional investors, currently boasting 160 partnerships. It is also worth noting that S&P Global is one of Lukka’s investors, so the choice is by no means random.
However, the S&P explains, Lukka uses a unique calculation methodology. The Lukka Prime Fair Market Value at 4:00 PM EST will be used to determine the index.
In addition, the indices are retroactive. In fact, Lukka has been keeping data since 2014, so data on these crypto indices is available from this date or from the launch of a cryptocurrency (Ethereum for example was born in 2015).
The indices will be calculated from Monday to Friday with the final price of the day reported in dollars at 6:00 PM EST.
Some macro-events, e.g. forks, might also influence the index.
S&P Bitcoin and Ethereum Indices
Currently, the S&P Bitcoin Index scores 7,678.36 points and a YTD return of 97.4%. It does better than the S&P Ethereum Index which scores 29,405.14 points and a YTD return of 342.92%. Finally, the S&P Cryptocurrency MegaCap Index scores a total of 5,895.79 points for a YTD return of 130.78%.
The launch of these cryptocurrency-related indices by S&P Dow Jones Indices was announced in December. It is a sign that cryptocurrencies are set to be an integral part of the financial market.