Morgan Stanley Capital International (MSCI), a global provider of equity is planning to launch indexes for crypto, citing CEO, Henry Fernandez that he has spoken to experts on the matter but didn’t provide a timeframe regarding the launch date.
MSCI Planning to Launch Launching Crypto Indexes
Morgan Stanley Capital International (MSCI), a global securities index publisher is planning on launching cryptocurrency-related indexes, according to CEO Henry Fernandez.
Speaking at an event hosted on the Clubhouse platform organized by venture capital firm Andreessen Horowitz earlier this week, CEO Henry Fernandez said MSCI has been talking to experts towards launching crypto indexes.
He gave no details as to which assets the index would focus on nor gave any timeline or details for their introduction.
MSCI adding a way to measure the performance of crypto assets would be another step towards mainstream acceptance for digital currencies.
MSCI publishes popular indexes for global equities and other securities that are used by asset managers and investors to guide the allocation of $14.5 trillion in assets globally by the end of last year.
Creating an Index Necessary to Legitimize Cryptocurrencies
S&P Dow Jones Indices, a division of U.S. financial data provider S&P Global, also launched indexes based on bitcoin, ether (ETH), and a basket of different cryptocurrencies last month.
The new indexes, S&P Bitcoin Index, S&P Ethereum Index, and S&P Crypto Mega Cap Index measures the performance of digital assets tied to them. The indexes use data from partner firm Lukka, whose headquarters are in New York.
Many financial institutions are unable to invest in cryptocurrencies directly, as they are only able to invest in equities, bonds, and funds.
Creating an index is the first step to providing legitimacy to an asset class or a theme for large institutions as it creates a benchmark for passive funds to track and for institutional investors to create products linked to the asset class.