Asia’s leading multi-asset exchange, Singapore Exchange (SGX) has started collaborating with UK-based cryptocurrency market data provider CryptoCompare to launch two cryptocurrencies indices, for bitcoin and ether.
According to a press release, the indices will be under the SGX iEdge index suite and will only use transaction data from top-rated cryptocurrency exchanges. Both the iEdge Bitcoin Index and the iEdge Ethereum Index use a 24-hour volume weighted average price, giving the most liquid market prices more importance and making the impact of illiquid markets negligible.
The Head of Index Services at SGX, Somin Karaban, was quoted as saying:
As the world moves swiftly towards digitalisation in the creation and accumulation of wealth, digital assets are increasingly being adopted by investors. We are excited about this collaboration with CryptoCompare to offer a suite of new indices for market participants in Asia, reinforcing our endeavour to innovate and meet market needs.
CryptoCompare’s Commercial Director James Harris noted that the cryptoasset data provider’s mission is to “bring greater transparency to the digital asset class by providing high quality, trusted data and indices.” Harris added the partnership with SGX will help it offer “greater global access to institutional-grade digital assets products on Asia’s leading multi-asset exchange.”
The press release details that, according to research data from CryptoCompare, the total assets under management (AUM) globally of digital asset tracker funds went up $220 million in March 2017 to over $4.5 billion by June 2020, representing a compound annual growth rate of 148%.
Much of the AUM is currently capture by asset managers based in the United States and Europe, Middle East, and Africa, it adds, although Asia is well-position to raise its share of global AUM, as fiat-crypto trading pairs in the region now account for 43% of the total global spot trading volumes.
The cryptocurrency indices are the latest addition to the SGX Index Edge, which has over the last four years built up indices for its clients that cover thematic investing, futures, smart beta, fixed income, and multi-asset solutions.
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