S&P Launches Digital Markets 50 Crypto Index

S&P Global plans to launch a new benchmark index that tracks a wide range of digital assets and blockchain-related companies, signaling growing recognition of the crypto sector within traditional finance.

The S&P Digital Markets 50 Index, created in partnership with tokenization company Dinari, includes 15 cryptocurrencies with a market capitalization of at least $300 million and 35 publicly traded companies in the sector with a market cap of at least $100 million, S&P announced Tuesday.

Constituents have not yet been published, but no single component will exceed 5% of the index. Some of the sector’s biggest companies include Bitcoin treasury company Strategy (MSTR), crypto exchange Coinbase (COIN) and Bitcoin miner Riot Platforms (RIOT).

A selection of crypto and blockchain-related stocks spanning Bitcoin mining, exchanges and payment platforms. Source: Barchart

Cameron Drinkwater, chief product and operations officer at S&P Dow Jones Indices, said the growth of the digital asset ecosystem has moved crypto “from the margins into a more established role in global markets.”

While indexes are not directly investable, they are key benchmarks for tracking market performance and often underpin exchange-traded funds (ETFs) and other investment products.

Dinari plans to issue a tokenized version of the index, known as a “dShare,” which would allow investors to gain direct exposure. The investable version is expected to launch by the end of 2025.

Related: Crypto mining, treasury stocks strike gold as Bitcoin booms

Indexing signals next wave of crypto recognition

One of the key implications of S&P’s move into crypto indexing is the potential for passive ETFs to one day track the performance of the Digital Markets 50 Index, much like traditional index funds mirror equity benchmarks.

For example, the SPDR S&P 500 ETF tracks the S&P 500, allowing investors to gain broad market exposure through a single product.

Several crypto index funds already exist. The Bitwise 10 Crypto Index Fund (BITW) tracks the Bitwise 10 Index, which includes the largest digital assets by market capitalization. 

Similarly, 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, providing diversified exposure to major cryptocurrencies through regulated exchange-traded products.

At the same time, recognition of tokenization as a transformative financial technology is growing. 

As Cointelegraph recently reported, the US Securities and Exchange Commission (SEC) is reportedly exploring a framework that would allow stocks to trade as tokenized assets on blockchain networks, potentially bringing traditional securities closer to crypto-style infrastructure.

Related: Morgan Stanley recommends ‘conservative’ crypto allocation for some portfolios

Source: https://cointelegraph.com/news/sp-digital-markets-50-index-cryptos-blockchain-stocks?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound