The renowned financial data company behind major Wall Street trading indexes, S&P Dow Jones Indices, has announced that it plans to launch a cryptocurrency index service with crypto data firm Lukka next year. With increased interest in crypto coming from Wall Street investors, this new index will provide crypto pricing information to encourage and inform a new influx of coin buyers.
According to many analysts, the 2020 crypto bull run is being driven by larger institutional investors. While these institutions previously balked at the idea of buying crypto, the runaway train of skyrocketing values have turned many into new believers in the value and future potential of digital coins.
This growing interest is leading household names like S&P Dow Jones Indices to provide greater levels of transparency into crypto pricing in a format that institutions have been accustomed. Reliable pricing data is key to instilling trust in the marketplace and is a primary motivator for S&P DJI.
As initially reported by Reuters, the new index will seek to implement best practices regarding coin pricing, selection and weighting. While this upcoming product launch is the first foray of S&P into the crypto space, it seems that it is only the beginning. It appears that the company is planning to get much more involved in the digital currency space, since its parent company, S&P Global has been recruiting blockchain engineers for several months.
S&P is also known to be planning an acquisition of a competitor, IHS Markit, for $44 billion. Assuming the deal closes, it would propel S&P to an even larger financial data firm than the leader it is today.
The entrance of S&P into the crypto space is very significant on many levels. One of the chief concerns that has kept high volume traders away from crypto besides volatility has been the perceived lack of transparency. Even though blockchain provides a publicly viewable ledger of all transactions, the existence of a market leader like S&P providing real-time crypto pricing data will instill greater confidence for institutions.
The way markets have operated historically is that after institutions enter a market on a broad scale, then the general public tends to follow shortly thereafter. The social proof of legitimizing the validity and viability of a new opportunity is often needed before the masses feel comfortable taking a risk.
It certainly appears as though the crypto space is standing at a crossroads at this moment. Once a deluge of new money enters the crypto market (as crypto ownership remains miniscule compared to mainstream market participation), the value and pricing of digital coins will be positioned for substantial growth at levels never seen. Time will tell when this tidal wave of growth will be unleashed, but the current moment is like the calm before a storm and the perfect time to buy META 1 Coin before the market opens to larger participation.
The fact that META 1 Coin Trust only sells its digital coins to Humans facilitates greater stability. When large institutions purchase high volumes of other digital coins, the values and prices of those coins may rise dramatically higher and faster. However, the sudden drops in value when they liquidate their holdings often leave individual coin holders left holding the bag with major losses in value.
META 1 Coin is a tribute to inspirational Humans and was designed exclusively for Humans. There are plenty of opportunities for institutions to make money. META 1 was intended to bring freedom and abundance to Humans who benefit most from greater access to crypto. We are excited to see the expansion and acceptance of the crypto space as it relates to the expanded wealth potential for Humans.