El Salvador President Nayib Bukele took a victory lap on Monday after the Bank of England’s British pound rapidly depreciated against the dollar. The institution has since resumed quantitative easing. Its action marks a clear pivot that many in the Bitcoin community predicted central banks would be forced into months in advance. Bukele’s Callout Bukele tagged the Bank of England with a triumphant “Told you,” over Twitter, scoring over 14,000 like and 2000 retweets from his followers. His brief comment…
S&P Dow Jones Indices (S&P DJI) is set to launch a cryptocurrency index in partnership with New York-based digital asset firm Lukka by 2021. This makes it the latest major financial firm to foray into the cryptocurrency industry.
According to the press release made today, S&P DJI will use data from Lukka to create indices for over 500 crypto-assets. This data will include Lukka’s aggregated data services Lukka Reference Data and Lukka Prime. Thus S&P DJI clients will work with the index provider to create customized indices and benchmarks for crypto-assets.
S&P DJI believes that integrating reliable pricing data would attract investors and reduce the risk of a volatile and speculative market. It is also expected that more firms will utilize the pricing data to offer new markets on their platforms.
S&P DJI chief Peter Roffman commented on the development, insisting that cryptocurrencies were fast emerging as a critical asset.
“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable, and user-friendly benchmarks,” He said.
Financial Institutions Turning To Crypto Assets
S&P Dow Jones Indices is arguably the most popular index provider. It provides indexes for S&P 500 and Dow Jones Industrial Average, two indices renowned in financial markets globally. S%P DJI foray into crypto-assets is a huge one because it will open a wave of investors towards crypto-assets.
There has been a huge rush by traditional financial firms towards crypto-assets in 2020. The rise of Bitcoin has contributed largely to this as the leading asset has enjoyed a massive bullish run. This has also led to an increase in demand from investors who view the currency as a hedge against inflation.
Large firms like Fidelity Investments and Grayscale Investment have started holding crypto-assets for institutional investors. At the same time, traditional exchanges have started offering Bitcoin derivatives.
This latest news has been received with positivity from the crypto community. With 2021 on the horizon, expectations are high that cryptocurrencies could move mainstream in the coming weeks.