Despite recent price declines, cryptocurrency adoption continues to grow—a stark contrast to 2018's "crypto is dead" narrative. Institutional investors remain active, and new crypto-linked products are emerging. On July 14th, S&P Dow Jones Indices expanded its crypto footprint by introducing the S&P Cryptocurrency Broad Digital Market Index (BDM), offering a comprehensive view of the broader crypto market.
Key Features of the New Cryptocurrency Indexes
1. Broad Market Coverage
The BDM Index tracks over 240 cryptocurrencies (out of ~11,000 total), with sub-indexes focusing on specific market segments:
- S&P Cryptocurrency LargeCap Index: Tops assets by market cap.
- BDM Ex-MegaCap: Excludes Bitcoin (BTC) and Ethereum (ETH).
- BDM Ex-LargeCap: Omits mega- and large-cap coins.
- LargeCap Ex-MegaCap: Focuses on major assets sans BTC/ETH.
2. Enhanced Transparency
Leveraging data from Lukka, these indexes aim to provide institutional-grade benchmarks, aiding risk assessment and investment strategies.
Why This Matters: Institutional Adoption Accelerates
Peter Roffman, S&P’s Global Head of Innovation, noted:
"These indexes offer unprecedented transparency into the crypto market’s rapid evolution—2021’s growth was historic."
Existing Indexes vs. New Additions
While S&P previously offered BTC/ETH-specific indexes (e.g., S&P Bitcoin Index), the BDM series significantly widens coverage, appealing to diversified crypto investors.
👉 Explore how institutions leverage crypto indexes
Market Context: Challenges and Opportunities
1. Price Volatility Persists
- Crypto markets have slumped since mid-May, with BTC testing $32K support.
- Negative catalysts: Tesla halting BTC payments, China’s mining crackdowns.
2. Bullish Rumors Unverified
Despite speculation (e.g., Apple’s potential crypto investment), lack of confirmation has muted price rebounds.
FAQs
Q: How do these indexes benefit traders?
A: They provide standardized metrics to analyze market trends and hedge risks.
Q: Is crypto still a viable investment?
A: Yes—institutional products like these signal long-term confidence, even amid volatility.
Q: What’s next for crypto indexes?
A: Expect more granular sub-indexes (e.g., DeFi, NFTs) as the market matures.
👉 Stay updated on crypto index developments
Author: Ali, a freelance crypto analyst with 8 years of industry coverage for CCN, NewsBTC, and more.
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