The Pure Jones Index and Pantera Capital launched a new digital asset benchmark for institutional investors who wish to track the encrypted market in a systematic manner. Unlike common market value products, this index incorporates the agreed income, liquidity and market value into the screening criteria.

18 Currency Inclusion Index

This product, S&P Pantera Digital Assembly Index, currently contains 18 digital assets. The five components of the current weight are ETH, BNB, SOL, TRX and HIPE.

This composition, unlike the index of encryption that focuses on bitcoin or purely market value, is more focused on agreements and trading infrastructure with economic activity in a continuous chain. According to the Standard, the index is intended for major service provider investors.

Check liquidity and income first.

The index selects the candidate assets from the broad digital asset index available to the standard, before the initial screening is based on market value and liquidity. The market value threshold for newly incorporated assets was $500 million and the current composition threshold was $250 million, with a liquidity ratio above 0.5.

After the initial screening, the index is ranked according to the agreed income of the last two quarters and is continuously included in the assets until the selected ingredients cover 99 per cent of the total income of eligible assets. The protocol income data is provided by Artemis.

  • Market value threshold for new components is $500 million.
  • Market value threshold for existing components is $250 million
  • Maximum single weight cap of 35%

In the distribution of weights, the index uses adjusted market value weights. At each rebalancing, the maximum ingredient weight shall not exceed 35% and the remaining individual weights shall not exceed 20%.

Continued expansion of institutional benchmark products

Bathy Clay, Chief Executive Officer of the Standard Jones Index, stated that the benchmark, using a framework centred on fundamentals and economic activities, could serve as a reference for a proactive management strategy and as a basis for subsequent index-linked products.

This new index focuses more on assets that continue to generate agreed income than it did on S&P Digital Markets 50 Index, which previously covered encrypted money and related listed companies. As the balance proceeds, the composition and weights may still change.