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S&P Global intends to unveil a new benchmark index that monitors an extensive array of digital assets and blockchain-associated firms, indicating an increasing acknowledgment of the cryptocurrency domain within conventional finance.
The S&P Digital Markets 50 Index, developed in collaboration with the tokenization enterprise Dinari, comprises 15 cryptocurrencies boasting a market capitalization of at least $300 million and 35 publicly listed companies in the field with a market cap of no less than $100 million, S&P declared on Tuesday.
The constituents have yet to be disclosed, but no individual component will surpass 5% of the index. Prominent players in the sector include Bitcoin treasury firm Strategy (MSTR), cryptocurrency exchange Coinbase (COIN), and Bitcoin miner Riot Platforms (RIOT).
Cameron Drinkwater, chief product and operations officer at S&P Dow Jones Indices, remarked that the expansion of the digital asset ecosystem has transitioned crypto “from the periphery into a more established position in global markets.”
Although indexes are not directly investable, they serve as crucial benchmarks for monitoring market performance and often support exchange-traded funds (ETFs) and various investment offerings.
Dinari intends to launch a tokenized variant of the index, referred to as a “dShare,” which would enable investors to acquire direct exposure. The investable variant is anticipated to debut by the end of 2025.
Related: Crypto mining, treasury stocks shine as Bitcoin surges
Indexing signifies the next wave of crypto acknowledgment
An essential consequence of S&P’s foray into crypto indexing is the potential for passive ETFs to one day mirror the performance of the Digital Markets 50 Index, much like traditional index funds reflect equity benchmarks.
For instance, the SPDR S&P 500 ETF follows the S&P 500, enabling investors to achieve broad market exposure through a singular product.
Numerous crypto index funds are already in existence. The Bitwise 10 Crypto Index Fund (BITW) monitors the Bitwise 10 Index, which features the largest digital assets by market capitalization.
Likewise, the Hashdex Nasdaq Crypto Index products—including HASH11 in Brazil and the Hashdex Nasdaq Crypto Index US ETF (NCIQ) in the United States—track the Nasdaq Crypto Index, offering diversified access to major cryptocurrencies through regulated exchange-traded products.
Concurrently, acknowledgment of tokenization as a revolutionary financial technology is on the rise.
As Cointelegraph recently reported, the US Securities and Exchange Commission (SEC) is reportedly considering a structure that would permit stocks to trade as tokenized assets on blockchain networks, potentially bridging traditional securities closer to crypto-oriented infrastructure.
Related: Morgan Stanley advises a ‘conservative’ crypto allocation for select portfolios
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