Pantera Capital Launches Revenue-Focused Crypto Index Excluding Bitcoin

Pantera Capital has launched a new index to track the crypto market, focusing on revenue-generating digital assets. The S&P Pantera Digital Asset Index selects coins based on their market cap and revenue, with a requirement for consecutive quarters of positive protocol revenue.

The index excludes Bitcoin, which doesn't generate any revenue and serves as a form of digital gold, and XRP, presumably due to failing to meet the protocol revenue requirement. The largest constituent is capped at 35% of the index, and all others are capped at 20% on rebalance.

The S&P Pantera Digital Asset Index has done well in backtests, outperforming the S&P's Broad Digital Asset Index with and without Bitcoin over the trailing five years. This new index could serve as a benchmark for crypto investors, providing a more compelling option than traditional indexes that often include meme coins and inactive blockchains.