S&P Pantera Digital Asset Index Launched, Prioritizing Quality Over Price Momentum

S&P Dow Jones Indices (S&P DJI) and Pantera Capital have partnered to launch the S&P Pantera Digital Asset Index, a benchmark for institutional investors seeking a more disciplined approach to digital asset allocation.

The index focuses on quality and real-world utility by prioritizing cryptocurrencies with continuous economic activity through protocol revenue. This is in contrast to those that rely solely on price momentum or market capitalization.

At launch, the index comprises 18 constituent assets, with Ethereum (ETH), BNB, Solana (SOL), Tron (TRX), and Hyperspace (HYPE) holding significant weights of 20% each. Bitcoin (BTC) is not included in the initial lineup due to its low protocol revenue relative to its market capitalization.

The index selection process utilizes data from Artemis, a blockchain data provider, on protocol revenue. Additionally, Lukka's information on cryptocurrency prices and liquidity is incorporated into the calculation.