The S&P Crypto Index sets a “financial threshold”, and Bitcoin is shut out
Author: Shenzhao TechFlow
Original title: S&P Dow Jones teamed up with Pantera to launch a crypto index, Bitcoin was shut out for “not making money”
Deep Tide Guide:S&P Dow Jones Indices (S&P Dow Jones Indices) collaborated with Pantera Capital to launch the S&P Pantera Digital Asset Index, which included 18 coins, but excluded all Bitcoin, XRP, and Meme coins.
The screening criteria draw on the S&P 500's “financial viability” threshold, requiring the agreement to record positive revenue and distribute value to token holders for multiple consecutive quarters. This is the first time that the world's largest index producer has introduced a fundamental screening framework in the crypto sector. ETH, BNB, SOL, TRX, and HYPE are among the top five positions.
The world's largest index producer has officially turned “revenue” into a ticket to crypto assets; Bitcoin didn't get it.
According to S&P Global's official press release on July 21, S&P Dow Jones Indices and Pantera Capital jointly launched the S&P Pantera Digital Asset Index (S&P Pantera Digital Asset Index). The index only includes tokens and companies with actual usage scenarios and real income, excluding Bitcoin and meme coins.
S&P Dow Jones Indices CEO Cathy Clay Says Bitcoin Fails to Pass the Index's Core Test, that is, generate real contract revenue.Pantera founder Dan Morehead pointed out in his July Blockchain Letter that there are only two questions repeatedly raised by institutional allocators: “What services does this agreement provide” and “does it make money”.
Drawing on the S&P 500, “financial viability” became the new yardstick for the crypto index
The core inspiration for this set of screening methods comes from the S&P 500.
The S&P 500 requires constituent stocks to record positive GAAP profits for four consecutive quarters. The S&P Pantera Digital Asset Index transports the same principle to the crypto field, requiring that the agreement record positive agreement revenue for multiple consecutive quarters (which must exceed the minimum threshold), verified by on-chain data provider Artemis, and that revenue must flow to token holders through mechanisms such as repurchases, pledged income after deducting inflation, distribution, or treasury controlled by the token holder.
After initial screening, the index ranked eligible assets according to the revenue of the previous two quarters, and gradually included until it covered 99% of the total revenue from eligible assets.
The index includes 18 constituent assets, weighted by fluctuating market capitalization, and quarterly rebalanced. The weight limit for a single token is 35%, and the remaining tokens are capped at 20%. These weight limits are consistent with the rules used by S&P in stock indices.
Top 5 holdings: ETH, BNB, SOL, TRX, HYPE
The five major positions in the index are Ethereum (ETH), BNB, Solana (SOL), TRX (TRX), and Hyperliquid (HYPE). Pantera revealed in the Blockchain Letter that Aave is also a component of the index.
Pantera said that the combined annualized revenue of all agreements in the index over the past two quarters exceeded $3 billion. Each of the selected agreements provides customer-paid services, and its tokens have a verifiable value accumulation mechanism.
The full list of 18 constituent tokens has not been publicly disclosed.
Why was Bitcoin excluded? Pantera gives three reasons
Pantera explained in detail why Bitcoin was excluded in its Blockchain Letter.
First, Bitcoin is a monetary asset. Institutional allocators usually have obtained exposure to BTC through single-asset ETFs and have established policies for their allocation. Second, existing crypto indices mix Bitcoin, meme coins, and actual revenue-generating agreements in one basket, making it difficult for institutions to underwrite fundamentals. Third, Bitcoin does not generate protocol revenue and cannot pass the financial viability screening set by the index.
Pantera believes the digital asset industry's narrative dilemma lies in the yardstick itself. Currently, mainstream benchmarks can only see the price of Bitcoin, but they can't distinguish between an agreement with real user payments and a token with no economic function.
It is only a benchmark index, and ETF products are being promoted
The index is currently only released as a benchmark index, and no ETF or investment products have been launched to track the index. Pantera said it has begun discussions with asset managers about ETFs and other products based on the index.
One notable detail is that Pantera Fund V has now launched the Morgan Stanley Alternative Investment Platform, becoming the first blockchain venture capital fund offered through a tier-1 global wealth management platform. More than 16,000 of Morgan Stanley's financial advisors and their clients can access the fund. Pantera's partnership with Morgan Stanley provides a ready-made distribution channel for future development of products for high-net-worth customers around the index.
Community Discussion: Is Bitcoin's “digital gold” narrative more stable as a result?
The news sparked a buzz in the Reddit r/Cryptocurrency community (380+ likes), and discussions focused on two directions.
Some Reddit users believe that future non-BTC ETFs based on this index will allow altcoins to gain greater institutional exposure, and investors can use Bitcoin ETFs in combination with individual altcoin allocations. Other users believe that the exclusion of Bitcoin will instead strengthen its identity as “digital gold,” while other crypto assets are increasingly viewed as utility networks or revenue-generating technology platforms.
Some users also pointed out that the index is currently only a benchmark; it cannot be bought or shorted, and the actual market impact will not be apparent until ETF products are launched.
Broader context: There is a huge product gap in institutional encryption configurations
Pantera quoted a set of data in the Blockchain Letter to explain the market gap: Bank of America and Fidelity currently recommend that customers allocate 1% to 4% of their portfolios to digital assets, but J.P. Morgan Private Bank found that 89% of family offices still do not hold any digital assets; EY research shows that 60% of institutions prefer to obtain direct exposure through registered investment products rather than exchanges or chains.
Pantera believes it's not a belief gap, but a product gap. Existing multi-asset products are excessively focused on Bitcoin, weighted purely by market capitalization, and juxtapose meme coins with real income agreements.
The index's launch comes at a time when altcoin season signals have yet to be confirmed but are improving. The CoinGlass Altcoin Season Index climbed to 58 in mid-July, above the neutral watershed but still below the 75 threshold to confirm rotation.
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