Prominent worldwide index provider FTSE Russell is boldly entering the bitcoin market by including blockchain-based data in its financial indices. Under a recently established alliance with SonarX, a blockchain data company focused on distributed finance (DeFi) analytics and on-chain measurements, this endeavor is part of.
FTSE Russell wants to offer more complete market insights by including data from more than 100 blockchains since institutional investors are growingly interested in digital assets. Together, we will enhance the index by incorporating basic network data, token supply analysis, staking patterns, and DeFi performance tracking.
Head of Digital Assets at FTSE Russell, Kristen Mierzwa, underlined that the collaboration fits with the increasing demand from institutional investors looking for a more in-depth understanding of the inherent value of cryptocurrencies. Using on-chain data, the startup intends to create essentially weighted indexes that might act as standards for digital asset investments.
Renowned for its iconic stock market indexes—including the FTSE 100, which measures the biggest UK-listed companies—FTSE Russell is a division of the London Stock Exchange Group. Increasing its knowledge of digital assets marks a significant change in how conventional financial institutions welcome the developing crypto economy.
The action aligns with the growing trend of institutional acceptance of cryptocurrencies. The integration of crypto data into existing index structures is likely to close the gap between conventional finance and the digital asset market as financial titans investigate blockchain technology for investment products.
FTSE Russell’s choice to include crypto assets in its indexes represents a major step towards general acceptance as blockchain technology keeps becoming popular in worldwide finance. This project might pave the way for more institutions to include organized digital currency exposure in their portfolios.
