The Dow Jones Index is arguably the best-known stock index in the world. It is like an accolade when the same company measures the crypto world.
S&P Dow Jones Indices announced five new crypto indices on July 13th. The world’s largest provider of indexed market data is expanding its digital portfolio for the first time since entering the crypto world in May.
The new indices should help to provide a much more complete picture of the crypto market. Because in May, S&P Dow Jones only launched tickers that showed the performances of Bitcoin and Ethereum. In contrast, the S&P Cryptocurrency Broad Digital Market (BDM) index is now in the foreground. According to Press release the BDM index maps 240 crypto currencies.
The other new tickers represent, for example, the performance of the cryptocurrencies with the largest market capitalization (LargeCap Index). There are also variants for both the LargeCap and the BDM that exclude Ethereum and Bitcoin (LargeCap Ex-MegaCap Index and BDM Ex-MegaCap Index). A BDM index, which excludes all major cryptocurrencies, rounds off the new offer from S&P Dow Jones (BDM Ex-LargeCap Index).
It should be noted that the indices do not represent the immediate price development. Instead, they measure performance on the market with a point system.
S&P Dow Jones wants more transparency in the crypto market
According to its own information, S&P Dow Jones is reacting with the new offer to a growing need for analysis instruments for the crypto market. The press release says:
The Digital Market Indices will make it easier for investors to access and evaluate this emerging technology-driven asset class while potentially mitigating some of the common risks associated with this traditionally speculative market.
The New York-based company obtains the price data on which the benchmarks are based from the data service provider Lukka.