S&P launches blockchain fundamentals index for digital assets The benchmark tracks blockchain networks using protocol revenue, offering an alternative to traditional market capitalization-weighted crypto indexes.

S&P Dow Jones Indices, in collaboration with Pantera Capital, has launched a new digital asset index that tracks blockchain networks based on protocol revenue, rather than the traditional approach of market capitalization or token prices. This index is derived from the S&P Cryptocurrency Broad Digital Asset Index but only includes assets meeting specific thresholds for protocol revenue, market capitalization, and liquidity. The included networks are ranked by their aggregate protocol revenue over the past two quarters and weighted by adjusted market capitalization, with a holding cap of 35% for the largest asset and general caps of 20% for others. The index undergoes rebalancing every quarter.

The initial version of the index contains 18 constituents, with Ether (ETH), BNB (BNB), Solana (SOL), TRON (TRX), and Hyperliquid (HYPE) comprising the five largest positions. Notably, Bitcoin (BTC) and XRP (XRP), although significant in the broader S&P cryptocurrency index, are excluded from this new benchmark because they do not meet the protocol revenue-based selection criteria. According to S&P, the rules-based framework aims to highlight established blockchain activity and reduce exposure to speculative tokens, positioning the index for institutional investment use and as a reference for actively managed digital asset portfolios.

This launch reflects the growing interest within traditional finance and asset management sectors to develop institutional-grade digital asset benchmarks. It follows recent efforts such as Hashdex’s Nasdaq Crypto Index US ETF and Franklin Templeton’s Franklin Crypto Index ETF, both offering crypto exposure through different index methodologies. The development also aligns with commentary from industry experts, including Bitwise’s CIO Matt Hougan, who anticipates a rise in crypto index funds as the market complexity increases and diversified digital asset products become more important for investors.

Overall, this new index represents a shift towards using revenue generation metrics within blockchain networks as a basis for investment benchmarking, which could offer a different lens on the health and economic activity of digital asset projects compared to traditional market cap-weighted indexes. S&P Dow Jones Indices’ continued expansion into digital asset benchmarks signals the sector’s maturation and increasing integration with established financial markets.