S&P Dow Jones Indices, a significant monetary knowledge agency, mentioned Thursday it should launch a customizable cryptocurrency indexing service in partnership with crypto knowledge supplier Lukka in 2021.
The approaching product is poised to grow to be a hub for cryptocurrency pricing knowledge at a time when extra Wall Avenue traders than ever are looking out. This yr’s bull run is claimed to be pushed by establishments angling for publicity to bitcoin.
“We’ve been watching [the digital asset space] and we really feel it’s at a degree of institutional curiosity in maturity, the place corporations similar to ours desires to get in and contribute to the transparency of {the marketplace},” mentioned Peter Roffman, international head of innovation and technique at S&P Dow Jones Indices.
Surging investor curiosity “bolstered the necessity for dependable pricing knowledge,” S&P DJI mentioned in a press launch.
Wall Avenue already had its share of crypto indices to select from. Bloomberg Galaxy Crypto Index has supplied quotes on extremely liquid cryptos since 2018. Nasdaq, the tech-heavy trade, has listed a number of crypto indices up to now few years.
Roffman declined to specify how the S&P/Lukka crypto indices would stack up in opposition to its rivals. However he mentioned the companions’ “institutional high quality” will mix for a “market main providing.”
“It’s going to actually make use of finest practices, each by way of pricing the cash, deciding on the cash, weighting them, you recognize, and all the concomitant transparency that we carry to {the marketplace},” he mentioned.
Lukka CEO Robert Materazzi mentioned his firm’s “Lukka Prime” pricing methodology “is a part of our relationship with S&P.”
Though the product represents S&P’s entrance into crypto indexing, various components point out the scores conglomerate is positioning to capitalize on but extra of the blockchain and cryptocurrency house. Father or mother firm S&P World has been hiring blockchain engineers for the previous a number of months.
Additionally of observe is S&P’s deliberate acquisition of competitor IHS Markit for $44 billion. If the deal will get previous anti-trust regulators, it might flip S&P into Wall Avenue’s unquestioned knowledge juggernaut.
It might additionally plug S&P into Lukka’s tie-up with IHS Markit. In mid-November, Lukka agreed to supply crypto knowledge to the Avenue by way of IHS. Executives from each corporations had been hesitant to stipulate the total scope of that providing on the time.
Raymond McConville, a spokesperson for S&P DJI, mentioned it was too early to touch upon S&P’s plans for the Lukka/IHS Markit providing.
UPDATE (12/3/2020 2:30 PM EST): This story has been up to date with further remark from S&P and Lukka executives.
