This is a massive step in the right direction that will contribute to the mass adoption of cryptocurrencies, and because of that, I see this as a very exciting development.
The first of the three crypto indices will, of course, be tied to Bitcoin (SPBTC). After that, the second one will be tied to Ethereum’s performance (SPETH). As for the third, it will be tied to the Bitcoin’s and Ethereum’s performances, weighted by market cap, and as such, it will be known as SPCMC.
As I see it, the move can only increase institutional adoption and participation, as it will give them the opportunity to earn from crypto without actually dealing with crypto. There are already plenty of institutional investors that were confident enough to go for cryptocurrencies themselves, usually through custodians or some similar third parties. But, that doesn’t change the fact that they opted to go for crypto.
However, there are still many who are avoiding digital currencies for a variety of reasons. Some don’t trust them, while others don’t know how to handle them, and don’t want to risk their money by investing in it. To them, it is unfamiliar financial technology. However, with crypto-based indices, those barriers can be removed, especially once these more skeptical institutions start profiting off of cryptos indirectly.
A Gateway to Full Investment
I believe that it won’t take long before they gather up the courage to try out the real thing, this time more directly.
Even if they don’t, the fact is that crypto is expanding in every direction, and even crypto indices will be more than a good solution if they attract these investors.
As far as it is known, the reference data and pricing will be delivered by a data provider, Lukka, which is already used by over 160 different crypto funds, and was backed by SP Global itself, so the company is no stranger to it.
Are you excited about cryptocurrencies finding another way to expand to traditional markets?