Key takeaways:
- S&P and Pantera have launched an index of 18 cryptocurrencies based on real revenues, liquidity and market size.
- The largest positions are: ETH, BNB, SOL, TRX and HYPE – not Bitcoin.
- This is a step towards institutional valuation of cryptocurrencies based on fundamentals rather than popularity alone.
A new standard is emerging in the cryptocurrency market that may change the way investors look at digital assets. S&P Dow Jones Indices in cooperation with Panther Capital launched S&P Pantera Digital Asset Index – a benchmark that moves away from a simple division by market capitalization and focuses on what is most important to the institution: real economic activity.
Cryptocurrencies as listed companies
- revenue generated by the protocol (e.g. network fees),
- liquidity,
- market capitalization.
This approach is reminiscent of classic financial markets, where companies are assessed based on financial results and not solely on investor sentiment.
The largest shares in the index currently belong to:
- Ethereum (ETH),
- BNB,
- Solana (SOL),
- TRON (TRX),
- Hyperliquid (HYPE).
This is a clear signal of a change in approach – Bitcoin is not the focal point this benchmark. Instead, projects generating recurring revenues dominate, mainly smart contract platforms and trading infrastructure.
How does the index work?
The selection process starts with a broad basket of S&P cryptocurrency assets, and then projects below the thresholds are eliminated (USD 500 million in capitalization for new ones, USD 250 million for existing ones), liquidity (index above 0.5) and revenues from the last two quarters are checked. Then, assets responsible for 99% of the revenues of the entire qualified market are selected and their weights are limited (max. 35% for the largest and 20% for the others).
The creators of the index emphasize that its goal is to provide a tool for institutional investors who are looking for a more structured and fundamental approach to the cryptocurrency market. As Dan Morehead from Pantera noted, the biggest problem in the industry remains one question: how to properly allocate capital to cryptocurrencies. The new index is intended to be the answer to this problem.
The S&P Pantera Digital Asset Index shows that the cryptocurrency market is maturing and is starting to be assessed according to the principles known from Wall Street. Protocol revenues may become a new basis for valuation, just like profits of companies on the stock exchange. This is potentially the beginning of a change in the narrative: from speculation to fundamental analysis.
Why is there no Bitcoin?
