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S&P Launches Crypto-Stock Index With Strict Market Cap Criteria

S&P Unveils New Crypto Index Merging Tokens and Stocks

  • S&P Dow Jones Indices introduced a new index combining major cryptocurrencies and crypto-related stocks.
  • The index, called S&P Digital Markets 50, includes 15 cryptocurrencies and 35 equities in the crypto sector.
  • Companies must have a market capitalization of at least $100 million to qualify; cryptocurrencies need a minimum value of $300 million.
  • No single asset in the index will have a weighting above 5%.
  • The index will be updated quarterly, following the same governance as other S&P benchmarks.

S&P Dow Jones Indices has launched the S&P Digital Markets 50, a new index that includes both traditional stocks and cryptocurrencies linked to the digital asset sector. The launch was announced on Tuesday in partnership with blockchain company Dinari.

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The S&P Digital Markets 50 index will feature 15 of the most prominent cryptocurrencies alongside 35 publicly traded companies involved with cryptocurrencies and blockchain technology. Eligible stocks must have a market capitalization of at least $100 million, while cryptocurrencies must have a market value of no less than $300 million.

According to a report from Barron’s, the index prevents any single asset from making up more than 5% of the total composition. The index will be reviewed and rebalanced every quarter, using the same standards and governance as existing S&P indices.

“Cryptocurrencies and the broader digital asset industry have moved from the margins into a more established role in global markets,” said Cameron Drinkwater, Chief Product Officer at S&P Dow Jones Indices. He added that this new offering gives investors a systematic way to track the digital asset sector.

Qualifying companies can include businesses involved in cryptocurrency mining, blockchain technology, and other related services. The S&P Digital Markets 50 is the first index from S&P Dow Jones Indices to blend equities and digital assets, reflecting growing institutional interest in the sector.

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