Key Points
- S&P Dow Jones Indices has launched the Digital Markets 50 Index for digital assets.
- The index includes 15 major cryptocurrencies and 35 crypto-linked equities.
S&P Dow Jones Indices has unveiled a new benchmark known as the Digital Markets 50 Index. This index is intended to provide investors with comprehensive, rule-based exposure to digital assets.
The Digital Markets 50 Index amalgamates 15 major cryptocurrencies and 35 crypto-associated equities into a single measure. Each constituent is capped to prevent overconcentration.
Index Governance and Accessibility
The index adheres to the standard governance and quarterly rebalancing process of S&P. It applies minimum size screens to both sides of the basket. The aim is to present a diversified overview of the sector, rather than focusing on a single token or company.
According to a report by Barron’s, a tokenized version of the index is in the works. This version is expected to be available via a partner platform by the end of the year, broadening accessibility.
Existing Cryptocurrency Indices
This new index is an extension of S&P’s existing Cryptocurrency Indices. These indices track the performance of individual coins and wider crypto baskets, enhancing market transparency. They cover assets like Bitcoin (BTC), Ethereum (ETH), and other large-cap tokens under separate methodologies.
Analysts believe that this type of blended benchmark could simplify the process for institutions to monitor the space. It includes both tokens and listed companies, while implementing familiar index rules around liquidity, caps, and rebalances.
The launch of this index coincides with a more conducive regulatory environment and an increase in digital asset adoption in traditional finance.
