VanEck head of digital assets research Matthew Sigel says that S&P Global “snubbed” crypto companies in its latest update of the S&P 500 index.
Sigel points out that in an announcement from the S&P Dow Jones Indices (“S&P DJI”) detailing the additions and deletions to its various indices, the biggest crypto firms are noticeably left out despite seemingly being solid candidates.
S&P Global is best known for maintaining the S&P 500 through its S&P Dow Jones Indices division, which is responsible for rebalancing the index every quarter.
Specifically, Sigel says crypto exchange Coinbase (COIN), business intelligence and Bitcoin (BTC) hoarder MicroStrategy (MSTR), retail trading giant Robinhood (HOOD) and Jack Dorsey-founded payments firm Block (XYZ) should have been added to the indices, but were perhaps left out due to concerns about the sustainability of their business models.
“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.”
S&P’s criteria for the index have several requirements for publicly traded companies, including a market cap of at least $20.5 billion, positive earnings for the last four quarters, the issuance of common shares and more.
According to Sigel, Robinhood in particular should remain profitable “under most any circumstance.”
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