S&P Launches Crypto Index Without Bitcoin, XRP; Focuses on Revenue-Generating Networks

S&P Skips Bitcoin, XRP for New Revenue-Focused Index

S&P Global has unveiled a new cryptocurrency index that deliberately leaves out Bitcoin and XRP. The index instead zeroes in on blockchain networks that generate revenue from their own operations.

The decision marks a shift in how Wall Street is beginning to classify digital assets. Rather than tracking the market by market capitalisation alone, S&P is betting on a model that rewards networks with proven business models.

What the Index Covers

The new index includes tokens from blockchains that collect fees, process transactions, or offer services that produce income. This approach effectively sidelines Bitcoin, which functions primarily as a store of value, and XRP, which is centred on cross-border payments settlements.

According to the source material, the index focuses on 'revenue-generating blockchain networks.' Analysts say this could include platforms like Ethereum, Solana, or other smart-contract chains that earn from transaction fees and decentralised finance activity.

Why Exclude Bitcoin and XRP?

Bitcoin's lack of native revenue streams makes it a poor fit for an index designed to track network earnings. XRP, while used for payments, does not generate the kind of on-chain fee revenue that other platforms do.

S&P's move suggests a growing appetite among institutional investors for assets that can be valued using traditional metrics. Revenue multiples and fee growth are easier to apply to blockchains that operate like digital toll roads than to assets that behave like digital gold.

The exclusion also sidesteps the ongoing regulatory uncertainty around XRP. The SEC's case against Ripple has created a cloud over the token, though a recent court ruling provided some clarity.

Market Reaction and Implications

The launch has been seen as a vote of confidence in the broader crypto ecosystem beyond the top two tokens. It could encourage more fund managers to create products that track this new benchmark.

Some observers note that excluding Bitcoin might limit the index's appeal to mainstream investors who view BTC as the entry point to crypto. But for those looking for assets with clearer cash flows, the index offers a different proposition.

Pluang, the original reporter of this story, highlighted that the index is part of S&P's ongoing expansion into digital asset benchmarks.

What to watch next is whether other index providers follow S&P's lead and whether fund houses launch exchange-traded products linked to this revenue-focused benchmark. The index could also face criticism for leaving out the two largest cryptocurrencies by market cap.