S&P launches protocol revenue crypto index without Bitcoin

S&P Dow Jones Indices and Pantera Capital have introduced a digital asset benchmark that ranks blockchain networks by protocol revenue rather than traditional market capitalization. The index is designed specifically for institutional allocation and aims to serve as a foundation for future investment products or as a reference for actively managed portfolios.

To be included, assets must first qualify from the broader S&P Cryptocurrency Broad Digital Asset Index by meeting minimum thresholds for protocol revenue, market capitalization, and liquidity. Eligible networks are then ranked by their aggregate protocol revenue generated over the previous two quarters. They are subsequently weighted by adjusted market capitalization, with the largest holding capped at 35% and other constituents generally capped at 20%. The index rebalances on a quarterly basis.

This revenue-based filtering mechanism produces a portfolio that looks markedly different from standard market-cap benchmarks. The index launched with 18 constituents, led by Ether, BNB, Solana, TRON, and Hyperliquid. Notably absent are Bitcoin and XRP, which are the largest components in the broader S&P crypto index but lack the native protocol revenue required for inclusion.

S&P stated that this rules-based framework is built to separate established blockchain activity from purely speculative exposure. For institutional investors, this offers a structural solution to a persistent problem in digital asset markets: differentiating networks that generate actual fee-based revenue from those riding market momentum.

Institutional indexing accelerates

The debut is part of a rapid expansion in institutional crypto benchmarking as traditional finance firms broaden their digital asset offerings. Last October, S&P introduced the S&P Digital Markets 50 Index, blending 15 cryptocurrencies with 35 publicly traded crypto ecosystem companies.

Competitors have moved quickly to capture institutional demand for diversified crypto exposure. Hashdex launched the Nasdaq Crypto Index US ETF on Feb. 14, 2025, becoming the first multi-asset spot crypto ETF in the United States. Six days later, Franklin Templeton introduced its own market capitalization-weighted crypto index ETF tracking Bitcoin and Ether. In April, MarketVector Indexes and Coinbase Asset Management partnered on the Coinbase Store of Value Index, which pairs Bitcoin with tokenized gold using an inverse-volatility weighting model.

As the digital asset landscape becomes increasingly complex, active selection of winning blockchain networks is proving difficult. Matt Hougan, chief investment officer at Bitwise, noted in December that “crypto index funds are going to be a big deal in 2026.” Revenue-weighted products represent the next evolution of this trend, giving portfolio managers a fundamentally driven tool to navigate a fragmented market.