Last Updated on May 5, 2021 by Jason
S&P launched three cryptocurrencies on Monday. They were for Ethereum, Bitcoin, and a combination of the two. Data is being sourced from Lukka. This move is touted as bringing more visibility to ether and Bitcoin data to Wall Street traders, who are eager to decode price action for crypto. They will compete against indexes from Bloomberg and Galaxy.
S&P stated that it is using ‘Fair Market Value Pricing’ to approximate the value of their assets, as opposed to dollars. As a result, Bitcoin was set at 7,611, Ethereum 24,811, and their combination was 5,617.
The index looks at the appreciation of the price, not the true price itself. Ray McConville said, “Comparing the two indices, we can see that Bitcoin year to date has grown 95.67% in value vs. Ether, which has grown 273.72% in value. The actual index value isn’t so much as important as the change in that index value over time.”