Coinbase launches COIN50 index to rival S&P 500 in crypto markets

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Coinbase has unveiled its crypto benchmark, the Coinbase 50 Index (COIN50), which will track the aggregated performance of the top 50 cryptocurrencies by market capitalization.

The index’s rationale is to provide a comprehensive view of the crypto market by distilling thousands of digital tokens to a select 50 based on fundamental standards and market size.

According to the announcement, the COIN50 aims to be the crypto version of the S&P 500. Its assets are selected and weighted by market capitalization, representing 80% of the crypto market’s total size. 

COIN50 could evolve as a cornerstone for diversified exposure to crypto’s core sectors, providing a reliable indicator of the industry’s overall performance.

VanEck head of digital assets research Matthew Sigel said:

“The COIN50 Index applies a fundamental filter to the selection process to ensure investability, adding an extra layer of rigor.”

Sigel added that the COIN50 uses VanEck’s MarketVector product focused on index creation.

Bitcoin-heavy index

The COIN50 currently weighs 50.3% of its distribution in Bitcoin (BTC), 27.5% in Ethereum (ETH), 6.4% in Solana (SOL), 3.1% in XRP, and 1.5% in Dogecoin (DOGE), while the remaining 45 coins are allocated only 11.2%.

Additionally, COIN50’s approach is distinct from that of other crypto indices, which have leaned heavily toward crypto infrastructure tokens, such as those powering layer-1 networks or smart contract platforms. 

Coinbase aims to break from this pattern, presenting an index that spans the main sectors within the crypto industry, such as “media and entertainment,” payments, and memecoins.

Notably, the COIN50 factsheet shows that the index’s yearly performance is 97.65%, with its best-performing assets being Quant (QNT), ZCash (ZEC), and Avalanche (AVAX).

According to data aggregator Artemis, the COIN50 yearly performance is much more significant than the crypto market’s average 19.4% returns in the same period.