S&P Launches BTC, ETH Crypto Indexes

Index data and research company S&P Dow Jones Indices has launched its first three cryptocurrency indexes, tied to the performance of the two largest digital assets, the firm said on 3 May.

According to the announcement, the first two crypto indexes will follow the performance of Bitcoin (SPBTC) and Ethereum (SPETH), while the third one — called S&P Cryptocurrency MegaCap Index (SPCMC) — will be tied to both assets, following their performance based on market cap. The firm further said the new indices were designed to bring ” transparency to the emerging cryptocurrency market”.

The performance of BTC and ETH will only be measured on “recognized, open exchanges” that meet the minimum liquidity and market capitalization requirements. The indices were launched on Monday using pricing and reference data from partner firm Lukka, which is backed by Dow Jones’ parent company S&P Global.

S&P Dow Jones further said it had decided to use Lukka Prime’s “Fair Market Value Pricing” methodology in order to provide the asset’s price in points rather than dollars. The firm has stated that each index will measure the price appreciation of BTC and ETH, as the actual index value is less important than the change in value over time.

S&P Dow Jones Indices first revealed its plans to release indices tied to crypto assets back in December 2020, when it partnered with blockchain data provider Lukka. At the time Dow Jones reportedly said the new service will not only cover BTC and ETH, but more than 500 digital assets. The initiative was spurred by the “need for reliable pricing data” in the crypto sector, which has already started attracting the attention of traditional investors.