FTSE Russell expands its offerings by incorporating digital assets and onchain data into indexes, enhancing crypto adoption - IcoHolder.
FTSE Russell, a leading stock market index provider, is making a strategic push to expand its offerings by incorporating digital assets and onchain data into its indexes. This move highlights the increasing institutional interest in cryptocurrencies and marks a significant step in the broader integration of digital assets into traditional financial markets.
In a recent announcement made on January 28, FTSE Russell revealed its partnership with blockchain data provider SonarX to develop new indexes and data products centered around cryptocurrencies. This collaboration aims to provide the data necessary to support institutional investors in making informed decisions regarding digital assets.
Kristen Mierzwa, the head of digital assets at FTSE Russell, emphasized that the move is a response to growing demand from institutional clients. "By providing crypto-focused data, we aim to better serve the needs of our institutional client base," Mierzwa explained.
FTSE Russell plans to utilize onchain metrics and market data for a variety of cryptocurrencies to build fundamentally weighted indexes. These indexes, which are typically used as benchmarks for passively managed investment funds in traditional finance, will now allow institutional investors to track and analyze digital assets based on more detailed fundamental factors.
A spokesperson from FTSE Russell shared that institutional investors are requesting more detailed data and insights into cryptocurrencies than ever before. This growing demand centers around onchain data that can help investors assess the intrinsic value of various blockchain protocols.
In recent years, traditional financial institutions have increasingly embraced cryptocurrency data, with Bloomberg Terminal incorporating more than 50 digital assets into its coverage in 2022. FTSE Russell’s collaboration with Grayscale in 2023 further expanded their reach, offering an index series covering cryptocurrencies and smart contract platforms, as well as other key segments of the digital asset space.
2024 has been a landmark year for crypto adoption among institutional investors, largely driven by the successful launch of U.S. spot Bitcoin ETFs. These ETFs have collectively attracted over $120 billion in assets under management, signaling a strong and growing interest in digital assets from the institutional sector.
The approval of Ether ETFs in 2024, although less dramatic, also points to a shift toward institutional investments in Ethereum. Analysts predict that Ether-focused funds will see a significant increase in inflows in 2025, with forecasts estimating nearly $5 billion in net inflows between January and May.
The rise of crypto ETFs has sparked predictions that more specialized products will emerge in the near future. Grayscale’s Dave LaValle has suggested that the success of Bitcoin and Ether ETFs will lead to the launch of additional single-asset products, as well as index-based and diversified offerings designed to appeal to institutional investors.
FTSE Russell’s entry into the digital asset index market further highlights the growing acceptance of cryptocurrencies in traditional finance. By offering new products tailored to the unique needs of institutional investors, the company is well-positioned to play a key role in the next phase of cryptocurrency integration into the financial mainstream.
With increasing institutional adoption and more products entering the market, the future of cryptocurrencies in traditional finance is looking brighter than ever.
