bitcoin Bitcoin
ethereum Ethereum
polkadot Polkadot
ripple XRP
Show details
S&P Has No Imminent Plans for Crypto Index Service

S&P Has No Imminent Plans for Crypto Index Service

Reading Time: 2 minutes by on May 4, 2018 Altcoins, Bitcoin, Finance, News
Follow by Email

S&P Dow Jones has announced that there aren’t any immediate plans by the company to offer crypto indices.

The financial indices behemoth has been beset by calls to add a crypto index to its catalog of market indices services. Despite the announcement, the firm hasn’t ruled out the possibility of offering such a service in the future. As mainstream investment continues to flow into the crypto market, the need for mainstream analysis tools continues to grow.

Alex Matturri, CEO of S&P Dow Jones Indices. Source

No Crypto Index Service for Now

According to Alex Matturri, the CEO of the S&P Dow Jones Indices, the time isn’t right yet for such a service. He made this known during an interview on his visit to Tokyo in April 2018. He also said that the firm had been inundated with requests from clients to develop a crypto tracking gauge.

Matturri made it clear that it was common for the company to receive lots of requests from its clients but it was incumbent upon S&P to determine which ones are viable. Having said this, he admitted that it could take a while before the company comes to a final decision on crypto indices.

Adopting a Cautious Approach

The S&P CEO spoke on the importance of maintaining the reputation attached to the company’s goodwill. According to him, the firm has been around for many years, and it would be unwise to tarnish its reputation developing a product idea that wasn’t well conceived. Part of Matturri’s concerns is the current regulatory environment in the crypto market, particularly concerning the SEC’s crackdown on crypto mutual funds and ETFs. Earlier in the year, the SEC raised investor protection concerns on those two markets.

Commenting on the matter, Matturri said that S&P doesn’t want to create an index that can be used by a product which can be manipulated. He also said the firm isn’t in the business of developing gambling aids, declaring that gambling belongs to “Macau and Las Vegas.” As a result, the company will be taking a cautious “wait and see approach” to the issue of creating a crypto tracking index.

Matturri also admitted that the concept of cryptos has some interesting aspects to it and is an asset that is in high demand. Thus, it would be in the best interest of the company to keep an eye on the market even though it has no plans to create a crypto index at the moment. The S&P CEO also the immense potential of the blockchain, the technology on which cryptos are built. Thus, Matturri says that he isn’t entirely against the idea of an S&P cryptocurrency index platform.

Crypto Index Tracking

Due to the nascent nature of the cryptocurrency market, crypto index tracking isn’t yet as evolved as in the mainstream financial markets. In March, Upbit launched first-ever crypto index service in South Korea. Index tracking helps investors to track different market indices to be able to make informed investment decisions.

Like BTCMANAGER? Send us a tip!
Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4
Join our telegram channel