S&P debuts Digital Markets 50 index to carry exposure to crypto coins and stocks

According to reports today, S&P Dow Jones Indices, the group behind the S&P 500 and the Dow Jones Industrial Average, has launched a new index, S&P Digital Markets 50, designed to meet the growing investor demand for diversified exposure to digital ￰0￱ product was introduced by the major index provider as part of its ongoing endeavor to incorporate crypto monitoring tools into its ￰1￱ institutional demand for crypto benchmarks continues to increase, S&P has previously developed indices that concentrate on digital assets. S&P 500 debuts new crypto index Launched in partnership with blockchain firm Dinari, the S&P Digital Markets 50 will bring together 15 main crypto coins and 35 stocks associated with crypto.

S&P stated that equities from most companies involved in crypto, blockchain, and related technologies are eligible. “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. “S&P DJI’s expanded index suite offers market participants consistent, rules-based tools to evaluate and gain exposure to this segment.” Dinari, which offers tokenized securities, will soon introduce an investable token that aligns with the new ￰2￱ will convert the stocks into digital assets, allowing them to be traded on decentralized blockchains instead of a traditional ￰3￱ the end of the year, the index will be on Dinari’s dShares ￰4￱ launch comes with a ￰5￱ to S&P, no single asset will make up more than 5% of the Digital Markets ￰6￱ equity constituents must have a market cap of $100 million, and potential new crypto coins must have a market cap of $300 million.

S&P has confirmed that the index would be subject to the same quarterly rebalancing and governance processes as its other ￰7￱ is the S&P exploring new markets? S&P has launched multi-asset class indices before, but the combination of stocks and crypto is a first for the ￰8￱ also wasn’t possible to invest in that kind of index on traditional financial markets. S&P’s new turn to crypto comes amid some market ￰9￱ billionaire hedge fund manager Warren Buffet t has long touted investing in the S&P 500, recent data shows that since 2020, the index has underperformed Bitcoin by around 88%. While the S&P 500’s USD value has increased by 106% since 2020, it has “collapsed” substantially in BTC currency, as pointed out in an October 5 X post by Phil Rosen , co-founder of the stock market statistics site Opening Bell ￰10￱ S&P 500 88% drop in nominal BTC value since 2020.