The first batch of new crypto indices will track Bitcoin and Ethereum, and are expected to drive exposures to digital assets in Asia.
SGX (Singapore Exchange) is collaborating with UK-based cryptocurrency market data provider , to launch crypto indices under the SGX iEdge index suite.
Since launch in October 2015, SGX Index Edge (renamed iEdge in 2018) has built up a wide array of indices covering thematic investing, smart beta, futures, fixed income and multi-asset solutions.
The first batch of new crypto indices will be the iEdge Bitcoin Index and iEdge Ethereum Index.
The new indices are expected to drive exposure to digital assets and market data in the region, while further broadening the range of iEdge indices that are available to SGX customers.
According to CryptoCompare research, the total AUM globally of digital asset tracker funds rose from USD 220 million in March 2017 to over USD 4.5 billion by June 2020, representing a compound annual growth rate of 148 percent.
While much of the AUM is currently captured by asset managers based in the US and EMEA, Asia is well-positioned to raise its share of this global AUM given that Asian fiat-crypto trading pairs now account for 43 percent of total global spot volumes, SGX says.
“As the world moves swiftly towards digitalisation in the creation and accumulation of wealth, digital assets are increasingly being adopted by investors,” said SGX Head of Index Services Simon Karaban.
“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.”