S&P Dow Jones Indices (SPDJI) has partnered with crypto software and data company Lukka for the launch of a global cryptocurrency asset index capabilities.
The benchmarking solutions will be a combination of SPDJI customised index offering supported by Lukka’s crypto asset pricing data.
The partnership is a result of the growing interest in cryptocurrencies in tandem with the growing usage of blockchain technology.
SPDJI will utilise Lukka’s data offering including its Lukka Reference Data and Lukka Prime, a fair market value-focused pricing methodology for digital assets.
The cryptocurrency index capabilities will enable investors to access the digital asset market while also reducing common risks by diversifying exposure using branded and custom indices.
Could bitcoin reach $300,000 in 2021?
Peter Roffman, global head of innovation and strategy at SPDJI, said: “With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks.”
Robert Materazzi, CEO of Lukka, added: “Customers with crypto data requirements will soon have access to the most trusted data in the industry underpinned by Lukka’s institutional-quality standards, such as AICPA SOC Controls.
“In a rapidly maturing industry, it is paramount to build to institutional standards when working with highly respected brands, such as SPDJI.”
The crypto market has rallied in 2020 as investors search for alpha during a significantly volatile year. As a result, numerous ETP providers have launched crypto-backed products in tandem with firms reaching milestone assets under management.