US-based MSCI considering launch of crypto indexes

By Ashika Rajan, Trainee Reporter
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Global securities index publisher MSCI is looking at launching indexes for cryptocurrency assets, according to Chief Executive Officer Mr. Henry Fernandez, in what would be another step towards mainstream acceptance for digital currencies and the companies trading in them.

Mr. Fernandez, speaking at a Clubhouse event organized by venture capital firm Andreessen Horowitz earlier this week, said that MSCI has been talking to experts and is planning to launch crypto indexes.

He gave no details on what assets any index would focus on or when they’d be released.

Companies such as Bank of New York Mellon Corp, Mastercard, Visa, and Goldman Sachs have taken tiny steps to assist cryptocurrencies, although they are still rarely utilized in everyday life.

The S&P Dow Jones Indices unveiled new cryptocurrency indexes in May, bringing bitcoin and ethereum to the trading floors of Wall Street. The S&P Bitcoin Index, S&P Ethereum Index, and S&P Crypto Mega Cap Index are three new indexes that will measure the performance of digital assets tied to them.

In April, crypto exchange Coinbase Global, whose largest stakeholder is Andreessen Horowitz, successfully listed on the tech-heavy NASDAQ, as bitcoin hit a record peak.

MSCI has been looking to expand its offerings, with Mr. Fernandez stating on Clubhouse that the fields of private credit and environmental, social, and governance (ESG) held opportunity for the company.

The company launched 20 thematic indexes in April to assist investors bet on “megatrends” in China that are aligned with the Chinese government’s policy objectives.

The company publishes prominent indexes for global equities and other securities, used by asset managers and investors to guide the allocation of $14.5 trillion in assets globally as of the end of 2020.

Inclusion in its indexes tends to open the door to more funds investing in the asset in question.

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