Tag Archives: crypto
Transparency, FTX, CeFi and DeFi
By now, the news in early November about the collapse of FTX, one of the largest global cryptocurrency exchanges, is sinking in. At S&P Dow Jones Indices, we often discuss the challenges of the cryptocurrency ecosystem and its risks across multiple dimensions. These include asset-level risks, technology risks, market risks and regulatory risks, as well…
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Digital Asset Strategies – To Diversify, or Not?
This blog was co-authored by Tyrone Ross and Erik Smith. Over the past 13 years, the cryptocurrency market has reached a cumulative market capitalization in the trillions. As of September 2022, Lukka Enterprise Data has listed 50 cryptocurrency assets with a market capitalization of over USD 1 billion. With an increasing number of investment options…
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New Crypto Indices Designed for the Asia Market
Cryptocurrencies were designed to be decentralized and borderless, and different regions have different rates of adoption and use. In Asia, a new report by Accenture titled “Digital assets: Unclaimed territory in Asia”1 reported that 52% of affluent investors held digital assets as of Q1 2022, and the percentage was expected to rise to 73% by…
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A Risk Control Approach to Cryptocurrencies: A Tool for a Crypto Winter
Earlier this year, we reported on the volatility of Bitcoin and cryptocurrencies overall. In February 2022, the market was slightly down from its all-time high in November 2021. S&P Dow Jones Indices had just launched the new S&P Bitcoin and Ethereum Dynamically Rebalancing Risk Control 40% Indices (CET Close), and we saw that risk-adjusted performance…
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Perspectives on the Current Crypto Slump
I’ll avoid the usual platitudes about the market downturn. Instead, I’d like to focus on how we can better understand the current cryptocurrency market movement by looking at the S&P Cryptocurrency Indices. First, to set the context for the current drawdown, we’ll take a look at the biggest declines in Bitcoin. Then, we’ll take a…
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Beyond Bitcoin: Increasing Accessibility through a Digital Assets Classification System
In part one of the Beyond Bitcoin series, we introduced the importance of applying a sector classification system to the emerging digital assets asset class. We examined what it looks like for an investor to expand their view of the digital assets markets beyond the oft-cited mega-cap assets (such as Bitcoin and Ethereum) and discussed…
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Beyond Bitcoin: Why Digital Assets Need a Classification System
A few weeks ago, after communicating that I would be pivoting my career into the digital assets space and focusing on data, a long-time friend asked me, “Oh, you mean working with cryptocurrencies and helping people manage their bitcoins?” I paused and then explained that there is more to the digital assets markets than Bitcoin,…
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Volatility, Cryptocurrency, and a Risk Control Approach
We’ve all heard it often—that volatility is a “feature” of Bitcoin and, by extension, the cryptocurrency market in general. While not all of us would agree with calling it a feature, most would agree that there is a significant amount of volatility in the cryptocurrency market. And, depending on your role—trader, asset manager, advisor, observer—you…
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Altcoins and Indices – Announcing Two Equal-Weight Indices Covering Largest Coins
In the rapidly evolving world of cryptocurrencies, one area that is getting a lot of attention is altcoins (or alternative coins). Generally, altcoins refer to cryptocurrencies other than Bitcoin. There are thousands of distinct cryptocurrencies that offer a wide variety of exposures. For instance, altcoins power decentralized finance (DeFi), infrastructure, gaming, the metaverse,1 and more….
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A Deeper Dive into the Digital Assets Ecosystem
S&P Dow Jones Indices launched the S&P Cryptocurrency Indices in May. The indices have shown historically high annualized returns accompanied by significant volatility and downside risk. One of the goals of indexing is to bring accessibility and transparency to markets, and we believe that launching indices with a trusted price provider, Lukka, has allowed market…