S&P Dow Jones Indices (S&P DJI) is launching global cryptocurrency asset index capabilities with Lukka, a New York City-based crypto asset software and data company, making it the latest major finance company to enter the nascent asset class. S&P DJI will provide S&P DJI-branded and customized indexing and benchmarking solutions supported by Lukka’s proprietary crypto asset pricing data in 2021.
As the market for cryptocurrency assets has evolved in recent years, investor interest in benchmarking and index-based solutions based on crypto and blockchain assets has grown and reinforced the need for reliable pricing data. S&P DJI is utilizing a variety of Lukka’s aggregated data services including Lukka Reference Data and Lukka Prime, the world’s first Fair Market Value-focused pricing methodology for crypto assets.
These new cryptocurrency index capabilities will make it easier for investors to access this emerging technology-driven asset class while potentially mitigating some of the common risks associated with this traditionally speculative market. S&P DJI’s well-established index governance and independence can provide diversified exposure from a series of branded and custom indices supported by Lukka’s institutional quality data.
“For more than a century, S&P Dow Jones Indices has been a pioneer in creating innovative and relevant indices and benchmarks that reflect the global market’s ongoing growth and evolution,” said Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices.
“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks. We’re excited to work with Lukka, who has been at the forefront of digital asset data services, to promote more transparency in this nascent sector.”
“Our collaboration with S&P DJI is yet another milestone that bridges the gap between the crypto asset ecosystem and traditional financial services,” said Robert Materazzi, CEO of Lukka.
“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 S&P DJI. Lukka is thrilled to help drive ongoing innovation in collaboration with S&P DJI.”
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.