00:00On July 21st S&P Dow Jones indices launched an S&P Pantera digital asset index. It's an 18 constituent
00:07rules based crypto benchmark and it screens tokens based on protocol revenue rather than price momentum. The one thing it
00:14doesn't have in there is Bitcoin which seems really odd. I mean that is the OG digital coin. So how
00:20is this a benchmark for crypto if it doesn't have Bitcoin. Yeah great question. Let me just take a step
00:26back and describe what's actually happened. So S&P is
00:29basically come up with a benchmark for all crypto assets. It's an institutional grade benchmark. So this is the first
00:36major benchmark for institutions to actually say if you want to put 10 million hundred million dollars how do we
00:43sort of divide that. What's the benchmark against which we should invest. So first of all let me credit them
00:48for coming up with the benchmark with Pantera Capital which has been in the business for the last 10 10
00:53years. There's very clear parallels to the S&P 500 minute got constructed back in 1957. Now it's been
00:5970 years. It's been a long time. But there are some parallels in the sense that this is the first
01:04industrial institutional grade benchmark that Pantera is going to manage that about 16 tokens they're going to invest in. Bitcoin
01:11is not one of them.
01:12And let me explain why. If you look at how Bitcoin has been performing last two years it's a different
01:17almost different asset classes more akin to gold compared to the other tokens which have got more equity like
01:22characteristics. Ethereum where there is a Tron chain Binance Coin Cardano. These are all platforms. Yes they are tokens but
01:31they are platform development platforms in which other commercial businesses are built.
01:35So you can evaluate them as an investment opportunity for the investment that they support. Bitcoin is very different. So
01:41yes it seems quite odd. The Bitcoin is not part of it. But I think that's actually quite deliberate.
01:46recognizing what's actually happening with Bitcoin anyway that's operating very differently than other tokens. Do you really have like 30
01:52seconds left. But does it create some sort of bifurcation when you think of
01:55like Bitcoin as one asset class and then sort of the yield generating stuff is another. It absolutely creates a
02:00bifurcation Tim. But I guess like I said it's it's not that S&P is S&P is recognizing what's
02:05been happening anyway.
02:06institutions allocating very differently when it comes to Bitcoin versus all of the tokens.
Comments