S&P Dow Jones Indices and Pantera Capital have introduced a new digital asset index focused on tracking blockchain networks and protocols based on protocol revenue. This approach marks a shift from traditional crypto benchmarks that rely on market capitalization or token prices.
Protocol revenue as the key metric
The index is derived from the S&P Cryptocurrency Broad Digital Asset Index and screens assets for minimum levels of protocol revenue, market capitalization, and liquidity. Once assets meet these requirements, eligible networks are ranked by their total protocol revenue over the previous two quarters. The final composition is then weighted by adjusted market capitalization, with a maximum allocation of 35% for the largest holding and up to 20% for most other constituents. The index undergoes quarterly rebalancing.
S&P Dow Jones Indices and Pantera Capital stated that the benchmark targets institutional investors and could be utilized as the basis for investment products or as a reference point for actively managed portfolios. According to S&P, the index’s rules-based structure is designed to differentiate established blockchain activity from more speculative digital assets.
The index’s methodology prioritizes blockchain networks with substantial protocol revenue, aiming to give investors exposure to projects generating meaningful economic activity rather than just speculative value.
Constituents and methodology
At launch, the index consisted of 18 digital assets, with Ether (ETH), BNB (BNB), Solana (SOL), TRON (TRX), and Hyperliquid (HYPE) as the largest holdings. Bitcoin (BTC) and XRP (XRP), which rank prominently in the broader S&P Cryptocurrency Broad Digital Asset Index, were excluded due to the protocol revenue selection criteria.
Mini dictionary: S&P Dow Jones Indices is a major global index provider, best known for benchmarks like the S&P 500, while Pantera Capital is a prominent blockchain investment firm focused on crypto startups and digital asset strategies.
| Index | Constituents | Largest Holdings | Weighting Method |
|---|---|---|---|
| S&P Digital Asset Index | 18 tokens | ETH, BNB, SOL, TRX, HYPE | Adjusted market cap, max 35% |
| S&P Cryptocurrency Broad Digital Asset Index | Wider selection | Includes BTC, XRP | Market capitalization |
Recent trends in digital asset benchmarks
The launch expands S&P Dow Jones Indices’ broader efforts in the crypto space. In October, the index provider rolled out the S&P Digital Markets 50 Index, which blends 15 cryptocurrencies with 35 public companies involved in the crypto sector.
This latest index is part of a growing movement in the industry to create institutional-grade benchmarks for digital assets. As traditional financial institutions continue to expand their crypto offerings and tokenized assets become more popular, demand for reliable metrics has increased.
Earlier this year, Hashdex introduced the Nasdaq Crypto Index US ETF, the country’s first multi-asset spot crypto ETF. Franklin Templeton followed with its own index fund, providing exposure to Bitcoin and Ether through a capitalization-weighted approach.
In April, MarketVector Indexes and Coinbase Asset Management released the Coinbase Store of Value Index. This new benchmark combines Bitcoin and tokenized gold, using an inverse-volatility weighting to capture diversified exposure.
Matt Hougan, chief investment officer at Bitwise, highlighted in December that crypto index funds are expected to see significant growth in 2026. Hougan argued that as the asset class matures and becomes more complex, diversified index offerings are likely to become more attractive for investors who want exposure to digital assets without attempting to pick individual winners.
With the fast-paced evolution of blockchain networks and uncertainty over long-term leaders, diversified index products may appeal to investors seeking broader market exposure.
