Image credit: Shutterstock
S&P Dow Jones Indices and Pantera Capital have launched a benchmark that selects digital assets using protocol revenue, market size and liquidity rather than market recognition alone.
The S&P Pantera Digital Asset Index went live on July 20 with 18 constituents. Ether, BNB, Solana, Tron and Hyperliquid were its five largest assets at launch, while Bitcoin was excluded because it did not satisfy the protocol-revenue requirement.
Positive Revenue and $500M Market Value Set Entry Rules
The benchmark begins with assets eligible for the S&P Cryptocurrency Broad Digital Asset Index. New constituents must have positive aggregate protocol revenue across the two most recently completed quarters and data coverage from blockchain analytics provider Artemis.
Assets must also exceed $500 million in market capitalization, adjusted market capitalization and 30-day average adjusted market capitalization. Existing members receive lower $250 million thresholds. New entrants must maintain a liquidity ratio above 0.5, while meme coins and abandoned projects are ineligible.
Artemis and Lukka Provide On-Chain and Pricing Data
S&P uses Lukka for pricing, trading, and reference data. Artemis measures protocol revenue and supplies circulating and outstanding token data used to calculate adjusted market capitalization.
The structure gives S&P market and pricing inputs alongside on-chain economic data for the revenue-based screen. S&P independently calculates and governs the benchmark.
18 Tokens Account for 99% of Eligible Protocol Revenue
Eligible assets are ranked by total protocol revenue over the previous two quarters. S&P adds the highest-ranked tokens until they collectively account for 99% of the qualifying universe’s revenue.
A 99.5% retention threshold applies for current constituents. The method shifts representation toward fee-generating networks rather than Bitcoin-heavy market-cap benchmarks. ETH, BNB, SOL, TRX, and HYPE led the launch basket.
Largest Index Constituent is Capped at 35%
Adjusted market capitalization weights the basket. The largest asset is capped at 35%, while remaining constituents are generally limited to 20% during rebalancing.
The index will rebalance after the third Friday of March, June, September, and December. The first scheduled quarterly review will use August reference data and take effect after the third Friday of September.
Benchmark Launches Without an ETF or Investable Product
S&P and Pantera designed the index for institutional benchmarking, active allocation, and possible index-linked products. The launch does not create an exchange-traded fund or allow investors to buy the index directly.
S&P has not announced a licensed fund, issuer, or timetable for an investable product tied to the benchmark.
