S&P Dow Jones Indices and Pantera Capital have introduced a new cryptocurrency index that excludes Bitcoin (BTC) and Ripple (XRP). According to the overseas crypto media outlet CoinGape, the index is a benchmark designed to enable institutional investors to allocate digital assets more systematically.

Launch of the 'S&P Pantera Digital Asset Index'... Ethereum Holds the Largest Weight

The newly launched 'S&P Pantera Digital Asset Index' consists of a total of 18 components. Ethereum (ETH), Binance Coin (BNB), Solana (SOL), Tron (TRX), and Hyperliquid (HYPE) make up the top five components, holding the largest weights.

Meanwhile, Bitcoin and XRP, as well as WhiteBIT Token, Unus Sed Leo, and Rain Protocol, were not included.

Reason for Excluding Bitcoin and Ripple: 'Failure to Meet Revenue Generation Requirements'

S&P Dow Jones Indices CEO Cassie Clay explained to CoinGape that Bitcoin and XRP were excluded because they failed to meet the core criterion of 'revenue generation requirements.'

CEO Clay stated, "By applying the same criteria to digital assets, we have built a system based on fundamentals and economic viability," adding, "Through our collaboration with Pantera and the use of Artemis data, we are applying the same standards as existing indices like the S&P 500, helping investors focus on fundamental factors even in the rapidly changing digital asset market."

He further noted that protocols with verifiable real economic activity are evaluated more highly than expectations of price appreciation or market sentiment.

Market Cap-Based with Quarterly Rebalancing... Adoption of Traditional Financial Index Methodology

Unlike existing cryptocurrency indices, which are primarily composed based on market capitalization or price trends, this index applies a methodology similar to traditional financial indices. Only tokens and protocols with real-world use cases and actual revenue generation are included.

Weights are determined based on market capitalization, and rebalancing is conducted quarterly. The weight of a single token cannot exceed 35% of the total, while the remaining components are each capped at 20%. This is the same methodology that S&P applies to its equity indices.

CoinGape reported that this calculation method aligns with the direction of institution-focused systems for Real World Asset (RWA) platforms bridging traditional finance and blockchain, by prioritizing protocols with confirmed real economic activity.

Backlash from the Bitcoin and XRP Communities

Meanwhile, CoinGape reported that the Bitcoin and XRP communities are pushing back against the new index, citing the exclusion of the representative cryptocurrencies.

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