550 coins will appear in new indexes being unveiled in the beginning of next year, the latest major step by conventional finance in crypto integration. It has been announced that S&P Dow Jones Indices, a joint venture between S&P Global, the CME Group and News Corp, will launch cryptocurrency indexes in 2021.
S&P DJI listed Bitcoin (BTC) and altcoins as an “emerging asset class” in a press release on Thursday. To launch the indexes, which will cover a reported 550 cryptocurrencies, the firm will partner with Lukka, a U.S. blockchain data provider.
“The time is right for independent, secure and user-friendly benchmarks with digital assets such as cryptocurrencies being a rapidly evolving asset class,” Peter Roffman, global head of innovation and strategy at S&P DJI, stated in the press release. “We look forward to working with Lukka, who has been at the forefront of digital asset data services, to foster greater transparency in this emerging industry.”
The step marks Wall Street’s recent pledge in accepting Bitcoin and other digital currencies, reflecting the increased interest from the institutional sphere we have been seeing in the past year. Previously, an investment firm also stated that bitcoin is more important than gold.
“Our collaboration with S&P DJI is yet another milestone that bridges the gap between the ecosystem of crypto assets and traditional financial services,” added Lukka CEO Robert Materazzi.
“In a rapidly maturing industry, when working with highly respected brands, such as S&P DJI, it is essential to build on institutional standards. In collaboration with S&P DJI, Lukka is delighted to help drive ongoing innovation.”
The release did not state which particular cryptocurrencies would be protected or the methodology behind their selection for each index, but one ranking method could be market capitalization, which is often used by other cryptocurrency-related indexes.
The shift comes as Bitcoin sets fresh all-time highs at the $20,000 level on different exchanges.