Partnership with SonarX
Deeper into the cryptocurrency space is FTSE Russell, a subsidiary of the London Stock Exchange Group. It has announced a partnership with blockchain data provider SonarX to create new crypto indexes using onchain metrics and other digital asset data as demand from institutional investors for deep crypto insight continues to rise.
Kristen Mierzwa, head of digital assets at FTSE Russell explained, the project would “better serve the needs of our institutional client base.” For all intents and purposes, this cooperation is a giant step to bringing the traditional financial institution closer to the ever-growing cryptocurrency world.
Onchain Metrics Powered Indexes
The new indexes will utilize on-chain data to derive the intrinsic value of blockchain protocols together with other major fundamentals. It is a very similar approach to traditional finance, whereby fundamentally weighted indexes are used as benchmarks for investment funds. For cryptocurrencies, this will offer a more appropriate and data-driven way to look at market trends and asset performance.
A spokesperson from FTSE Russell said the firm has seen growing interest in onchain data from institutional investors, which is crucial for the valuation of cryptocurrencies.
Increasing Institutional Adoption
Institutional adoption of cryptocurrencies has continued its solid uptrend, reaching a record in 2024. The spot Bitcoin ETFs gained significant traction as over $120 billion flowed into the asset class, while inflows into the spot Ether ETFs moved more slowly but briefly exceeded $3 billion during the back of 2024. Analysts believe institutional investments in Ethereum and other cryptocurrencies will keep on growing in 2025.
This is a trend reinforced by investment firms such as Galaxy Digital, which in turn predict Ether ETF inflows to exceed $5 billion in the first half of 2025.
Broader Industry Trends
FTSE Russell is not new to innovating in the digital asset space; in 2023, the firm partnered with Grayscale to launch index series related to cryptocurrencies and smart contract platforms. Other financial giants, like Bloomberg, have also been extending their crypto offerings, adding more than 50 digital assets to their platforms.
With this, FTSE Russell further fortifies its commitment to a bridge between traditional and digital finance for the evolving needs of the institutional client base and further positions cryptocurrencies for mainstream acceptance.
