S&P Launches Crypto 50 Index But There’s A Catch

S&P Dow Jones Indices has introduced a new index called the S&P Digital Markets 50. This marks a major step toward blending cryptos with traditional equity markets.

S&P Unveils Hybrid Crypto Index With Dinari

As revealed by a Barron’s report, the index combines 15 leading cryptocurrencies and 35 crypto-related stocks. This creates one of the first hybrid benchmarks that tracks both digital and conventional assets.

The move comes amid growing investor demand for diversified exposure to the digital asset economy. S&P said the new index will provide a structured and transparent way for investors to gain exposure to blockchain-linked assets. The financial analytics firm manages the iconic S&P 500 and Dow Jones Industrial Average.

The trend of blending equities with digital assets continues to gain momentum. Recently, Cyber Hornet sought SEC approval for an ETF combining S&P 500 and XRP.

Developed in partnership with blockchain firm Dinari, the Digital Markets 50 aims to reflect the performance of companies and assets shaping the digital economy. The index will also be available in a tokenized format on Dinari’s dShares platform.

This allows investors to access it through blockchain-based tokens. The tokenized version will be rolled out for the first time at the end of 2025.

The index will not have more than 5% weight of each asset. Hence, no single asset will dominate. The crypto stocks in the index should have a minimum stock market value of $100 million and the cryptocurrencies’ valuation won’t be less than $300 million.

These regulations are put in place to maintain the balance of the mix and do not expose the investors to excessive risks associated with unstable or difficult to sell assets.

Source: https://coingape.com/sp-launches-crypto-50-index-but-theres-a-catch/