Home Crypto Exchanges S&P Dow Jones Indices Bitcoin Ethereum and Hopefully Other Coins Soon in the list in 2021

S&P Dow Jones Indices Bitcoin Ethereum and Hopefully Other Coins Soon in the list in 2021

S&P Dow Jones Crypto

S&P Dow Jones previously announced that they will be launching cryptocurrency indices in 2021.  They stated that they will be covering up to 550 digital assets.

Reportedly, with an aim to bring transparency to the evolving cryptocurrency market, index provider S&P Dow Jones Indices LLC on Monday went live with three cryptocurrency indices.  These 3 indices have been designed in a way to measure the performance of a group of crypto assets listed on recognized and open exchanges.

For clarity, each crypto index is made up of a selection of cryptocurrencies, grouped together and weighted by market capitalization (market cap). The market cap of a cryptocurrency is calculated by multiplying the number of units of a specific coin by its current market value against the US dollar.

The S&P Cryptocurrency Mega Cap Index – measures the performance of Bitcoin and Ethereum digital assets.

Reuters reports, the new indices, the S&P Bitcoin Index, S&P Ethereum Index AND S&P Crypto Mega Cap Index, would measure the performance of bitcoin, ethereum and digital assets.

Cryptocurrency is a highly volatile space and it becomes important to monitor every click and action.  The indices is important for seasoned traders who are continually honing their skills by making their decisions based on key performance indicators.

Delivering accurate data for trading to people is very important to help them make well-informed trading decisions. Traders need lot of data when making their decisions like the ideal cycle time, the total counts of units produced, availability of the asset and lot of other stuff. When doing all this reliability of data is crucial. Traders spend a lot of time and effort in estimating the performance of an asset type.

Professionalization of trading will be possible only with standardized reference rate and spot price index. Several cryptocurrency exchanges and trading platforms have been providing pricing data. The big picture of the state of the cryptocurrencies in general is very crucial.

People who are the pulse of the stock market are now making it to become the pulse of the cryptocurrency market.

Indices are important “if there is a greater number of buyers than sellers (more demand), the buyers bid up the prices of the stocks to entice sellers to get rid of them. Conversely, a larger number of sellers bids down the price of stocks hoping to entice buyers to purchase.”

More of coins will be added through the year and it is good to see cryptocurrencies enter the Wall Street.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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