S&P Launches New Crypto Index Combining Tokens And Stocks

S&P Dow Jones Indices reportedly announced on Tuesday the S&P Digital Markets 50, a new index that combines 15 major cryptocurrencies with 35 stocks tied to the cryptocurrency sector. 

The index, reported by Barron’s, is being developed in partnership with blockchain firm Dinari. While S&P Dow Jones has previously created multi-asset class indices, this is its first to blend traditional equities with cryptocurrencies. The group is backed by S&P Global (SPGI) and CME Group (CME). In pre-market trade, SPGI’s stock edged 0.7% higher, while CME’s stock gained 0.3%. On Stocktwits, retail sentiment around both companies was in ‘neutral’ territory.

The company stated that stocks eligible for the index must have a market capitalization of at least $100 million, while cryptocurrencies must have a market capitalization of at least $300 million. No single asset will make up more than 5% of the index, which will follow the same quarterly rebalancing and governance as S&P’s other benchmarks. It added that eligible stocks would include companies operating in the cryptocurrency sector, blockchain technology, and other related areas.

Cameron Drinkwater, Chief Product Officer at S&P Dow Jones Indices, said the new index provides investors with a rules-based way to track the growing digital asset market. “Cryptocurrencies and the broader digital asset industry have moved from the margins into a more established role in global markets,” he said.

The report said Dinari plans to issue an investable token tracking the new benchmark through its dShares platform by year-end. The tokenization process allows assets in the index to be traded digitally on decentralized blockchains rather than conventional exchanges.

The launch comes as the cryptocurrency market has been hitting fresh highs amid concerns of debasement during the U.S. government shutdown. Total market capitalization crossed $4.4 trillion on Monday as Bitcoin’s price touched a fresh record high of more than $126,000.

Read also: BNB Token Surges To Record High, Overtakes XRP As Third-Largest Cryptocurrency

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