S&P Launches Blockchain Fundamentals Index for Digital Assets
Vexoda Newsroom
S&P Dow Jones Indices and Pantera Capital have introduced a new digital asset index based on protocol revenue, offering an alternative to traditional market capitalization-weighted benchmarks.
S&P Dow Jones Indices and Pantera Capital recently launched the S&P Blockchain Fundamentals Index for Digital Assets, which tracks blockchain networks using protocol revenue. This marks a significant shift from conventional crypto indexes that rely on market capitalization or token prices.
The new index includes assets meeting specific thresholds in terms of protocol revenue, market capitalization, and liquidity. Constituents are ranked by aggregate protocol revenue over the last two quarters and weighted based on adjusted market capitalization, with no single holding exceeding 35%.
Initially launched with 18 constituents, notable holdings include Ether (ETH), BNB (BNB), Solana (SOL), TRON (TRX), and Hyperliquid (HYPE). Bitcoin (BTC) and XRP (XRP) were identified as the largest non-constituents compared to S&P’s broader cryptocurrency index.
The launch is part of a growing trend in institutional-grade benchmarks for digital assets. Other recent developments include Hashdex's Nasdaq Crypto Index US ETF, Franklin Templeton's Crypto Index ETF, and MarketVector Indexes' Coinbase Store of Value Index, each designed to provide diversified exposure through various weighting models.
This new index aims to distinguish between established blockchain activity and speculative investments, potentially offering a more robust framework for institutional allocation. It highlights the increasing complexity in crypto markets as traditional finance firms expand their offerings into tokenized assets.
For traders, this index could serve as an alternative benchmark when considering investment products or actively managed digital asset portfolios. However, it remains to be seen how widely adopted and successful these new benchmarks will become.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.