S&P Dow Jones Indices has launched three new cryptocurrency indices in an attempt to help retail traders easily gain exposure to these two behemoth cryptocurrencies. The S&P Bitcoin Index, S&P Ethereum Index, and the combined index of both crypto-coins: the S&P Crypto Mega Cap will allow investors a chance at diversification without too much risk.

People have been waiting for a traditional finance product that tracks cryptocurrency prices, and it looks like their prayers are answered. S&P announced last year they were coming out with an index in 2021 to track the value of cryptocurrencies, but up until now, we had no idea what this meant. Now there’s finally some clarity - after months of speculation about when this would happen or how it would work- as S&P has disclosed more information on its proposed "Cryptoindex."

The legacy finance world is constantly evolving. To ensure that investors are getting the most accurate information about Bitcoin and other cryptocurrencies, it's necessary for authoritative sources to step up their game by providing reliable pricing data anytime an investor wants access. This move will not only make investing in cryptocurrency easier but safer too because you won't have to worry about a shady API giving false or inaccurate price signaling on your phone screen at all times as you learn more about this exciting new field of investment!

The S&P 500's decision to include cryptocurrency prices in their index is a sign that the industry as a whole has warmed up to the idea of integrating cryptocurrencies. The potential for an ETF approval would be much easier down the road than it otherwise might have been, had this not happened.

The final price weightage of the indices will be a result of Lukka, which is a data provider for cryptocurrencies. They screen every digital exchange on transparency and other factors to determine inclusion in their process.

The new index, SPCMC is a response to the price volatility that investors may experience with traditional indexes. In these cases, there will be a quarterly rebalancing of underlying cryptocurrencies so one won't remain overexposed or underexposed if serious price movements occur in either Ethereum and Bitcoin's prices.

Sources: https://www.coindesk.com/sp-goes-live-with-bitcoin-ethereum-crypto-indexes
https://cryptopotato.com/sp-dji-releases-bitcoin-and-ethereum-indexes/

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