S&P Dow Jones Indices, a division of S&P Global, announced the launch of the S&P Cryptocurrency Broad Digital Market (BDM), a “broad digital market index” of 240 cryptocurrencies.
S&P Dow Jones Indices (S&P DJI) has announced that BDM will track 240 cryptocurrencies and cover about 80% of the total cryptocurrency market capitalization. Today it is about $ 1.3 trillion. The data provider will be the New York-based company Lukka Prime.
To be included in the BDM index, cryptocurrencies must meet certain criteria. Firstly, at the time of inclusion in the index, the market capitalization of each cryptoasset must be at least $ 10 million. Secondly, the median daily trading volume (MDVT) of a cryptocurrency for three months must be above $ 100,000. In addition, every cryptoasset applying for inclusion in the BDM index, must have a White Paper.
There were some exceptions. So, stablecoins will not be able to get into BDM, although they represent an important part of the cryptocurrency ecosystem. S&P DJI believes stablecoins will not reflect the rise or fall of the cryptocurrency market. Privacy-focused cryptoassets are also excluded. Cryptocurrencies under litigation also have no chance of getting into the BDM. If there are later legal problems with the digital currencies included in the index, they can be excluded from the index.
“For over a century, our indices have provided insight into how the markets work. Now, with the advent of the BDM index, investors will get a broader and more transparent ‘picture’ of the cryptocurrency market, “said Peter Roffman, head of strategy and innovation development at S&P Dow Jones Indices.
Recall that earlier the Chicago Mercantile Exchange (CBOE) also announced its readiness to launch cryptocurrency indices this year.
