SGX to launch crypto indices in collaboration with CryptoCompare

By Edil Corneille

Singapore Exchange (SGX) will launch crypto indices in collaboration with CryptoCompare, a UK cryptocurrency market data provider. The crypto indices are to be launched under the SGX iEdge index suite, namely the iEdge Bitcoin Index and iEdge Ethereum Index, as the first batch of such indices.

“As the world moves swiftly towards digitalisation in the creation and accumulation of wealth, digital assets are increasingly being adopted by investors. 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,” said Simon Karaban, Head of Index Services at SGX.

“Our mission is to bring greater transparency to the digital asset class by providing high quality, trusted data and indices. We are delighted to work in partnership with SGX to offer greater global access to institutional-grade digital assets products on Asia’s leading multi-asset exchange,” said James Harris, Commercial Director of CryptoCompare.

According to research data by CryptoCompare, the total assets under management (AUM) globally of digital asset tracker funds rose from US$220 million in March 2017 to over US$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 United States and the Europe, Middle East, and Africa (EMEA) region, 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.

Through technology, data, and strategic partnerships, SGX Index Edge has in the past four years built up a wide array of indices for its clients covering thematic investing, smart beta, futures, fixed income, and multi-asset solutions with crypto indices now as the latest addition.