FTSE 100 owner expands digital assets index

FTSE 100 Owner To Expand Digital Assets Index Amid Growing Crypto Demand As Bitcoin Sale Continues

  • FTSE Russell seeks to add 43 cryptoassets to its FTSE Digital Asset Index
  • It only launched its first Bitcoin, Ethereum and Cardano benchmarks in October
  • Crypto Prices Under Pressure After Bad Weekend That Saw Bitcoin Dip 20%

The company behind the FTSE 100 is set to expand its new crypto index amid growing demand for digital assets, reports show.

After launching its first bitcoin, ethereum and cardano benchmarks in October, FTSE Russell is now looking to add 43 more crypto-assets to its new FTSE Digital Asset Index series.

The London Stock Exchange affiliate told City AM that the new indices will “sit alongside” its benchmark stocks, underscoring the growing adoption of crypto by the general public.

The news came as crypto investors and traders were hit by another very volatile weekend, with bitcoin crashing down to 20% at one point.

New Entries: FTSE Russell Seeks To Add 43 Cryptoassets To Its New FTSE Digital Asset Index

“The end goal is to have EU and UK compliant indices that sit right next to the FTSE 100 and the Russell 2000,” said Kristen Mierzwa, Head of ETF Strategy and Business Development. of the FTSE Russell.

Demand for cryptocurrencies has soared exponentially during the pandemic, with prices accelerating as more institutional and retail investors seek returns in the asset class.

Bitcoin has climbed more than 150% in the past year alone, reaching an all-time high of $ 69,000 in early November.

But cryptos are very volatile, with bitcoin crashing down to 20% over the weekend and dropping 5% today.

By noon today, bitcoin was down 2% to $ 48,169, while ethereum was down 4% to $ 4,013, according to data from Coindesk.

Sale: Bitcoin dropped as much as 20% over the weekend

Sale: Bitcoin dropped as much as 20% over the weekend

“It was clearly becoming a market where people wanted data,” Mierzwa told City AM.

His comments highlight how much the need for reliable pricing is growing now that cryptocurrencies are becoming so popular.

FTSE Russell estimates that crypto will have a global market capitalization of over $ 3 trillion by 2025, putting the asset class on a par with private equity.

Mierzwa said the 43 crypto assets they would add to the series of digital asset indices had “made their way through the verification process,” leaving out the overwhelming majority of the more than 10,000 known digital assets. .

But stablecoins and even coins even could be added to the index, as well as blended products, which reduce risk by pairing crypto with less volatile assets such as gold, she added.

The emergence of cryptos has alerted regulators, with financial experts calling on the government to grant the Financial Conduct Authority the power to control the alarming growth in advertisements for high-risk cryptocurrencies.

They fear that the advertisements, now displayed on the sides of buses, street billboards and the walls of transport networks such as the London Underground, will give many unproven cryptocurrencies a veneer of credibility that ‘they don’t deserve.

Meanwhile, in October, the Bank of England called for urgent regulation of digital assets, warning they could trigger a financial collapse given the market size.

LSEG acquires Quantile

The London Stock Exchange Group has agreed to buy Quantile Group in a £ 274million deal.

Quantile is a provider of portfolio, margin and capital optimization services for banks, hedge funds and financial institutions trading in derivatives.

The acquisition is the first since LSEG completed its $ 27 billion buyout of Refinitiv, the financial reporting and trading services business, in January of this year.

Quantile, which was founded in 2015, is chaired by Stephen O’Connor, the former Morgan Stanley banker who, until August, had also been a longtime director of LSEG.

LSEG owns financial data and analysis provider Refinitiv, which was separated from Thomson Reuters, parent company of Reuters News, in 2018 by a consortium led by Blackstone before being acquired by LSEG in January 2021.