Brazilian crypto and blockchain companies believe that S&P indices will give more credibility to the market.
Brazilians highlight greater confidence and credibility with crypto prices reaching S&PNOTÍCIAS
The big news on Thursday, with the announcement that S&P Dow Jones – a joint initiative between S&P, CME Group and News Corp – is to launch cryptomore-price indices in 2021, also caught the attention of the Brazilian market.
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As reported by Cointelegraph Brasil, 550 cryptomoedas are expected to appear in the new S&P indices next year, among them the largest, Bitcoin, and most likely the major altcoins such as Ether, XRP, Bitcoin Cash and Litecoin.
S&P Dow Jones will partner with blockchain Bitcoin Future data provider Lukka to establish the indices for each cryptomoin.
In the crypto market, price oscillation between exchanges – which is also an arbitrage opportunity – has already been pointed out as one of the market’s weaknesses, which does not have a consolidated index to base cryptomeda prices on.
Nevertheless, many blockchain companies bet on oracles and blockchain price aggregators to base their buying and selling prices.
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The CEO of the Brazilian exchange Foxbit, João Canhada, believes that the entrance of Bitcoin in Wall Street through the front door is a proof of the credibility and professionalism of the market:
„This shows a great advance towards professionalisation of the sector, despite already having over 1000 exchanges in various locations, the traditional market needs more traditional and reliable sources within the financial sector to expose itself to digital assets such as Bitcoin given the high regulation. Such an index will reflect in a fairer price formation for digital assets and help to decrease their volatility in the long term and allowing several traditional institutions to participate in the sector, this adds enormous liquidity and enhances Bitcoin in the long term“.
For Bernardo Schucman, CEO of Brazilian service mining company MaaS and blockchain FastBlock, the financial market now has a reliable index for cryptomoeda prices, which should further stimulate mainstream adoption:
„The index is viewed very favourably, as the price of Bitcoins is very variable from exchange to exchange and having an index arbitrated by a Dow Jones S&P level institution brings greater credibility and security to the digital asset and future investors“.
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In August this year, FastBlock was acquired by Marathon Patente Group, listed on another stock exchange, Nasdaq, for $30 million.
Large financial corporations have embraced the cryptoesphere and blockchain industry, whether for institutional investment or for the development of decentralized financial products.
The announcement by Lukka and S&P Dow Jones, however, does not specify which 550 currencies are available in the 2021 index or which methodologies will be considered when choosing which currencies to list.
Translated with www.DeepL.com/Translator (free version)