The company behind the FTSE 100 is set to expand its new crypto index amid growing demand for digital assets, according to reports

The company behind the FTSE 100 is set to expand its new crypto index amid growing demand for digital assets, according to reports. 

Having launched its first bitcoin, 비트코인 ethereum and cardano benchmarks in October, FTSE Russell is now looking to add another 43 crypto-assets to its new FTSE Digital Asset Index series.

The London Stock Exchange subsidiary  that the new indices will ‘sit alongside’ its benchmark equities, highlighting crypto’s increasing mainstream adoption.

The news came as crypto investors and traders were hit by another highly volatile weekend, with bitcoin crashing as much as 20 per cent at one point.

‘The end goal is to have EU and UK compliant indices which sit right alongside the FTSE 100 and the Russell 2000,’ said Kristen Mierzwa, the head of ETF strategy and business development for the FTSE Russell.

Demand for cryptocurrencies has soared exponentially during the pandemic, with prices gathering pace as more institutional and retail investors chase returns in the asset class.

Bitcoin has soared by more than 150 per cent over the past year alone, hitting an all-time high of $69,000 at the start of November.

But cryptos are highly volatile, with bitcoin slumping as much as 20 per cent over the weekend and tumbling another 5 per cent today.

At around midday today, bitcoin was down 2 per cent to $48,169, while ethereum was down 4 per cent to $4,013, according to Coindesk data. 

‘This was clearly becoming a market that people wanted data around,’ Mierzwa told City AM. 

Her comments highlight how the need for reliable pricing is growing now that cryptocurrencies are becoming so popular. 

FTSE Russell estimates crypto will have a global market cap of over $3trillion by 2025, putting the asset class on a par with private equity. 

Mierzwa said that the 43 crypto assets that they will add to the digital asset index series had ‘have made their way through the vetting process’, leaving out the overwhelming majority of the over 10,000 known digital assets out there.

But stablecoins and even meme coins could be added to the index, along with blended products, 비트코인 which reduce risk by pairing crypto with less volatile assets such as gold, she added. 

The emergence of cryptos has alerted regulators, with financial experts calling for the Government to grant the Financial Conduct Authority powers to control the .

They fear that the adverts, now emblazoned on the sides of buses, street billboards and the walls of travel networks such as the London Underground, are giving many unproven cryptocurrencies a veneer of credibility they do not deserve.

Meanwhile in October, the Bank of England called for the urgent regulation of digital assets, warning that they could trigger a financial meltdown given the size of the market. 

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