S&P Dow Jones Indices has launched three indices linked to cryptocurrencies and specifically to Bitcoin, Ethereum and one that combines them both. It is about:
- 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 fall under the S&P Cryptocurrency Index Series .
The data that will become part of the indices is provided by Lukka Inc, via Lukka Prime and Lukka Reference Data. It is the leading company in providing cryptocurrency data for institutions, which currently boasts 160 collaborations. It should also be noted that S&P Global is one of Lukka’s investors, so the choice is not at all random.
However, they explain from S&P, Lukka uses a unique calculation methodology. The Lukka Prime Fair Market Value at 4.00 pm EST will be used to determine the index.
Furthermore, the indices are retroactive. In fact, Lukka keeps data since 2014, therefore data on these crypto indices are available from this date or from the launch of the cryptocurrency (Ethereum for example was born in 2015).
The indices will be calculated Monday through Friday with the final price for the day reported in dollars at 6.00 pm EST.
Some macro events, such as forks, could also affect the index.
S & P’s Bitcoin and Ethereum indices
Currently, the S&P Bitcoin Index scores 7,678.36 points and a YTD return of 97.4% . The S&P Ethereum Index does better 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 destined to be an integral part of the financial market.