S&P launches blockchain fundamentals index

• S&P Dow Jones Indices launched a blockchain index based on protocol revenue instead of token prices.
• The benchmark excludes Bitcoin (CRYPTO:BTC) because it does not meet the index's revenue criteria.
• S&P said the index is designed to help institutional investors measure digital assets using blockchain fundamentals.

S&P Dow Jones Indices and Pantera Capital launched the S&P Pantera Digital Asset Index, which ranks blockchain networks using protocol revenue instead of token prices.

The new benchmark differs from many cryptocurrency indices because it measures blockchain activity and revenue rather than focusing on market capitalisation or price performance.

"We're trying to bring the same sort of principles that we have in our equity indexes into digital assets," said S&P Dow Jones Indices Chief Executive Officer Cathy Clay.

The index includes digital assets that meet minimum thresholds for protocol revenue, liquidity and market capitalisation, while Bitcoin (CRYPTO:BTC) is excluded because it does not satisfy the revenue requirement.

S&P Dow Jones Indices said the benchmark is intended to help institutional investors evaluate digital assets, while no share price reaction was available because the announcement did not involve a publicly listed company.

The benchmark is rebalanced every quarter and caps the largest holding at 35% to reduce concentration.

S&P Dow Jones Indices and Pantera Capital said the index applies a rules-based methodology similar to traditional financial benchmarks.

At the time of reporting, Bitcoin price was $65,715.09.