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 and Pantera Capital launched a digital asset index that tracks blockchain networks and protocols based on protocol revenue, marking a departure from crypto benchmarks built around market capitalization or token prices.

The index draws from the S&P Cryptocurrency Broad Digital Asset Index but only includes assets that meet minimum thresholds for protocol revenue, market capitalization and liquidity. Eligible networks are then ranked by aggregate protocol revenue over the previous two quarters and weighted by adjusted market capitalization, with the largest holding capped at 35% and the remaining constituents generally capped at 20%. The index is rebalanced quarterly.

According to an announcement from the companies, the benchmark is intended for institutional allocation and may serve as the basis for investment products or as a reference for actively managed digital asset portfolios. S&P said the rules-based framework is designed to distinguish established blockchain activity from speculative exposure.