What did the S&P 500 do for the equality -equivalent, the indices would do for crypto

In Crypto today for newsletter advisers, Patrick Murphy From the EightCap, it provides insights into the maturation of crypto as a possession and compares the evolution of indices to the early days of S&P.
Then, then, Leo Mindyuk From Mltech answers questions about indices to ask an expert.
Happy reading!
What did the S&P 500 do for the equality -equivalent, the indices would do for crypto
Like today’s crypto, equality in the early 20th century is an emerging and mainly irregular market, characterized by significant breakage and a lack of widespread public understanding. In 1957, when the S&P 500 was introduced, it changed the financial scene, providing a benchmark for investors. Not only did it reflect equities as a class of possession, but it also entered the way for mainstream adoption. Are we in the same crossroads with cryptocurrency? With indices preparing to play a transformative role in its maturation, it appears.
Cryptocurrency maturation and the emerging role of indices produce indices of catalysts for greater crypto adoption. For example, the CoinDesk 20 Index (CD20) Serves as a benchmark for the broader crypto market, helps provide market views and acts as a building block for products to expand investor opportunities.
A fragment and a market change?
The crypto market is a fragment scene, a paradox of change and instability. While more than 23,000 cryptocurrencies exist, most suffer from low trading and limited liquidity. This “long tail” includes a significant percentage of projects that do not get traction; Estimates suggest more than 50 percent of cryptocurrencies launched since 2021 have stopped. An instance of Stark: 1.8 million tokens became “dead coins” in the first quarter of 2025 only.
Despite this thinner volume, trading activity remains heavily concentrated in a number of leading cryptocurrencies, featuring real market breakage.
High volatility is a determining characteristic of crypto breakage, clearly shown by bitcoin dramatic crashes and the bull is running. Price “bombs” often appear in blue, and incidentally, the market can remain stagnant even in the face of significant news. Prices often oppose logical movements following basic announcements, only to suddenly spike or drop without a clear catalyst. This unpredictable emphasizes how thin and concentrated trading structures remain throughout the market.
An example of this phenomenon is the SEC’s approved ether (Et) Funds exchanged by exchange (ETFS) in May 2024. Despite being a major milestone in regulation, the ETH was barely transferred on the day of the announcement. One week later, however, it went up to 15 percent without a new information recognized. These types of delayed and unreasonable reactions are surprisingly common, featuring how thin liquidity, concentrated handling, and trading -driven sentiment continue to lead to large segments of the crypto market.
Signs of maturation
Despite its current challenges, the crypto market shows clear signs of maturation. Interest in the institution reduces, with major financial players investing, cooperating, and developing crypto -focused products. The clarity of regulation also improves the world.
Key Regulatory & Institutional Milestones
- ETF approved: more than the initial Bitcoin area And approved by ETH ETF, they are now reaching Solana and other cryptocurrencies.
- MICA regulation: EU markets in crypto assets (Mica) The framework represents the first comprehensive crypto licensing in a tier-one market. OKX is the first global exchange to secure a Mika licensewhich provides to offer regulated services to more than 400 million people. Since then, Coinbase, Kraken, Robinhood, and Bybit have also gained MICA licenses, industrial growth and broader adoption.
- Stablecoin Genius Act: This new US federal framework for Stablecoin issues aims to provide clarity of regulation, innovation, and protect consumers. Recent Circle list in NYSE, with the Central Bank Digital Currency (USDC) Being a preferred adherence to the EU (Adopted by exchanges such as Coinbase, OKX, and Binance)marks an important moment for stablecoins.
Growing Stablecoin Adoption
2025 EightCap data shows Stablecoin payments today for 18 percent of monthly deposits, and the most popular of the deposits is in Tether reflects a wider trend. In 2024, Stablecoins processed an estimated $ 27.6 trillion, which exceeded the combined volume of visa and MasterCard transactions by 7.7 percent.
The role of indices
The current crypto market is in parallel to the Equities market before the S&P 500. The introduction of widely based on indices entering the market marks a significant step forward.
A call to the action
Time is critical for developing cryptocurrency indices that can bring order to current disturbance. CoinDesk 20, now available in more than 20 investment vehicles worldwide through EightCap, ML Tech, Wisdomtree and others, shows how indices, transparency and variety -exposure to digital ownership can provide. The industry should build this foundation, creating more stable tools for entrepreneurs and investors. The whole integration of digital assets in the global financial ecosystem is not just a possibility, but an inevitable.
– Patrick Murphy, Chief Commercial Officer, EightCap
Ask an expert
Q: Why are crypto indices logically the next step for institutional adoption, similar to that did the S&P 500 for equities?
A: S&P 500 simplified complexity, carries structure, benchmarking, and ease of accessing. Instead of having to underwrite each individual stock, investors can access a broad, proxy based on the rules for exposure to the US stock market. The locked trillion in capital flows. Crypto now remains fragment, noisy, and challenging on the benchmark. It needs the same evolution. Institution allocators and a lot of retail investors don’t ask “Which token should I have?” -They ask how to access a variety of, balanced exposure to the asset class. Index products are how crypto can invest in size. It is not about choosing specific coins but about delivering exposure through policies based on policies that meet compliance, liquidity, and transparency standards. The emergence of crypto-native-native and systematic approaches of wrappers is the necessary evolution to move from imaginary to measured allocation.
Q: Why is the lack of crypto indices preventing the adoption of institutional and financial counselor?
A: Indices are important tools for allocation, benchmarking, and communication. Without them, it is almost impossible for institutional or counselor investors to justify crypto exposure within traditional asset allocation frameworks. They lack a reference for performance, volatility, and risk contribution. Counselors cannot model it; CIO cannot underwit it; The committees cannot approve it. The result is a conflict with full investment, compliance, and operational layers. Indices are what to translate crypto from an abstract opportunity to a specified, investor exposure.
Q: How is the Crypto indexing to restore the opportunity set for both allocators and systematic techniques?
A: The indices create the structure that both allocators and volume managers need. For institutions, they offer benchmarkable exposures that can be model, monitored, and approved within traditional investment frameworks. For systematic techniques, indices become available ingredients: inputs for factor models, hedging layers, or allocation signals. But in order to fully unlock this potential, participants need an institutional wealth management With the help of the right wealth platform, the transition indices from the passive benchmark to the dynamic building blocks: ready to be allocated to, systematically, and are emerged directly with the flow of institutional workflows.