S&P Dow Jones Prepares Crypto Indexes

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Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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A rating agency has more power that you can imagine. They control what pension funds, wealth funds and governments can buy. If a rating agency says that a country is no longer triple A (aka AAA), but simply AAB, one step below, then billions of dollars which normally go towards government bonds, have to be reinvested.

Therefore, whatever the three major rating agencies say is investable, moneys follow. Those three are Moody’s, Fitch and S&P. The latter, S&P Dow Jones, which stands for Standard and Poor (named after the two companies that merged to for mit 160 years or so ago) decided since yesterday that crypto as of next year is deservant to get own indices, showing once again that the asset class is ready for global adoption.

Mr Peter Roffman said on behalf of S&P Dow Jones Indices that:

With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks.

Advertentie.

This is not 2017

It has been said before and we’ll say it again, the reason that the current rise of Bitcoin’s price is not met with screaming headlines and exaggerated FOMO across the internet is because it appears to be carried by institutions rather than individuals.

First and foremost, we should thank hedge fund manager Paul Tudor Jones who admitted back in May of this year, right after the Bitcoin halving, that he would invest part of his fund directly in Satoshi Nakamoto’s coin. His friend Stanley Druckenmiller followed suit in the fall. When also Fidelity Investments and Japan’s Nomura Holdings Inc decided to step into Bitcoin, word was out.

By October, Twitter CEO Jack Dorsey’s Square invested moneys directly into Bitcoin, PayPal announced it would start allowing crypto trades and MicroStrategy doubled it’s initial investment. The reason for every new low in Bitcoin being bought and the gap being filled seems to be the interest of institutional money.

Therefore one has to conclude that this is not 2017. This is not an ICO launch with uncontrollable shitcoins that will spring up alongside Bitcoin to get a piece of the action. Although there will undoubtedly be those as well, this now feels like the ascent of something new.

Although 2020 has been an annus horribilis for the world, that same world has also realized that it should open it’s eyes to digital currencies.

Volatility should remain though, as it is part of the cryptospjere. We can already wonder how well those Wall Street dudes will take a 20% fall in Bitcoin’s value in one session, hah.