FTSE Russell expands into crypto indexes with SonarX partnership

FTSE Russell, a subsidiary of the London Stock Exchange, is set to enhance its indexing capabilities by launching new cryptocurrency indexes in collaboration with blockchain data provider SonarX.

This partnership, announced on January 28, 2025, aims to address the growing demand from institutional investors for detailed on-chain data and crypto metrics.

Kristen Mierzwa, head of digital assets at FTSE Russell, stated that the initiative is designed to "better serve the needs of our institutional client base."

The company plans to leverage on-chain metrics and market data from various cryptocurrencies to create fundamentally weighted indexes.

These indexes will allow investors to track digital assets based on fundamental factors rather than just market capitalisation.

A spokesperson for FTSE Russell noted that there is an increasing interest among institutional investors for more comprehensive data regarding cryptocurrencies.

This trend reflects a broader shift in traditional finance, where firms like Bloomberg Terminal have expanded their coverage to include numerous digital assets.

The partnership with SonarX marks a significant step in integrating blockchain data into established financial systems.

FTSE Russell's strategy aligns with the rising institutional adoption of cryptocurrencies, particularly following the successful launch of U.S. spot Bitcoin (CRYPTO:BTC) ETFs in 2024, which attracted over $120 billion in assets under management.

While the approval for Ether (CRYPTO:ETH) ETFs has been more subdued, analysts predict that institutional interest in Ethereum will grow significantly in 2025.

Dave LaValle from Grayscale has indicated that the success of current crypto ETFs may lead to the development of new single-asset and diversified products tailored for institutional investors.