S&P Launches Revenue-Focused Crypto Index Excluding Bitcoin and XRP
S&P Dow Jones Indices (S&P DJI) has launched a new cryptocurrency index in collaboration with crypto-focused investment firm Pantera Capital. The S&P Pantera Digital Asset Index focuses on protocol revenue generated from actual network activity, rather than market value.
The index excludes Bitcoin (BTC) and XRP, despite being among the top assets by market value, as they do not meet the 'protocol revenue' requirement. Catherine Clay, CEO of S&P Dow Jones Indices, stated that Bitcoin met other eligibility requirements but is not operated as a revenue-generating protocol.
The index evaluates operating revenue generated by blockchain networks through actual services and excludes staking rewards and investment returns from evaluation. It uses a market value-weighted approach with quarterly rebalancing and capping the maximum weight for any single asset at 35 percent.