- S&P launches a crypto index tracking 18 revenue-generating blockchain protocols, excluding Bitcoin.
- Bitcoin was left out because it does not meet the index’s revenue-generation criteria.
- The new benchmark will rebalance quarterly with constituent weight caps to manage concentration.
S&P Dow Jones Indices has introduced a new digital asset benchmark built around revenue-generating blockchain protocols, marking a new addition to its index lineup. The benchmark was developed in partnership with Pantera Capital and is intended to provide investors and asset managers with a standardized way to measure segments of the digital asset market.
Unlike broader cryptocurrency trackers, the index applies selection standards centered on protocol revenue, liquidity, and listing requirements, while excluding assets that do not meet those criteria.
Index Prioritizes Protocol Revenue and Liquidity
Speaking during an interview, S&P Dow Jones Indices Head of Index Investment Strategy Kathy Jones said the company designed the benchmark to reflect principles already used in its equity indices. She said the digital asset market moves faster than traditional equities, but the goal was to apply familiar selection criteria.
According to Jones, the methodology assesses whether blockchain protocols generate revenue through utility rather than yield-based mechanisms. Liquidity and listing requirements are also part of the screening process used to determine eligibility.
The benchmark currently contains 18 digital assets. Its five largest constituents are Ether, Binance Coin, Solana, Tron, and Hyperliquid.
Bitcoin Excluded Under Index Methodology
Bitcoin is not included in the index because it does not satisfy the methodology used for constituent selection. Jones said Bitcoin is not considered a revenue-generating protocol under the benchmark’s rules.
She added that the benchmark will follow a quarterly rebalancing schedule similar to the company’s equity indices. The methodology also includes weighting limits, with the largest constituent capped at 35%, while no other token can account for more than 20% of the market capitalization-weighted index.
Jones said the benchmark is intended to provide investors with a reference point that aligns more closely with traditional equity index construction while also reflecting the characteristics of digital assets.
Revenue Measured From Protocol Activity
Jones explained that the benchmark focuses on utility-driven revenue generated by protocol activity rather than returns from yield-bearing instruments.
She said S&P Dow Jones Indices worked with Pantera Capital, led by Dan Morehead, to develop the methodology. According to Jones, the selection process examines how blockchain protocols generate revenue outside of yield-based investing before determining whether they qualify for inclusion.
She also noted that the benchmark could serve as a performance reference for crypto fund managers and investors seeking a standardized comparison within the digital asset market.
During the same interview, Jones also addressed the company’s separate decision regarding potential changes to S&P 500 inclusion rules for large initial public offerings. She said an extensive public consultation was conducted before independent index committees decided to retain the existing methodology rather than introduce a fast-track process for companies such as SpaceX.
Related: Wall Street Tumbles: Dow, S&P 500, Nasdaq Slip While Crypto Rebounds
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