VanEck’s head of digital assets research, Matthew Sigel, has raised concerns about S&P Global’s recent update of the S&P 500 index, claiming that the company has “snubbed” crypto companies. In a statement from S&P Dow Jones Indices, which oversees the S&P 500, Sigel noted that major crypto firms were left out of the latest index update, despite meeting the necessary criteria.
S&P Global is renowned for its management of the S&P 500 index, which is rebalanced quarterly by its division, S&P Dow Jones Indices. Sigel highlighted that companies like Coinbase, MicroStrategy, Robinhood, and Block should have been included in the index update, but were seemingly overlooked due to concerns about the sustainability of their business models.
Sigel expressed his disappointment on Twitter, stating, “SNUBBED! COIN, HOOD, MSTR, and XYZ hit the quant marks needed but were ghosted by S&P – turns out there’s a specter beyond the numbers… Zero tech or financials added, but still seems conspiratorial. Lots of doubt in the committee that they will remain profitable, it seems.”
The criteria for inclusion in the S&P 500 index include a market cap of at least $20.5 billion, positive earnings for the last four quarters, and the issuance of common shares. Sigel argued that Robinhood, in particular, should maintain profitability under most circumstances.
In today’s ever-evolving financial landscape, the exclusion of prominent crypto companies from the S&P 500 index raises questions about the index’s adaptability to the changing market dynamics. As digital assets continue to gain mainstream acceptance, the integration of crypto firms into traditional indices like the S&P 500 could be crucial for reflecting the true scope of the modern economy.
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[Disclaimer: The article is for informational purposes only and does not constitute financial advice. Readers are advised to conduct their own research and consult with a professional financial advisor before making any investment decisions.]