In the Crypto For Advisors Bulletin today, Patrick Murphy of Eightcap, provides information on the maturation of cryptography as an asset and compares the evolution of the indices with the first days of S&P.
Then, Leo Mindyuk of Mltech answers questions about indices in Ask to Expert.
Happy reading!
– Sarah Morton
What the S&P 500 did for the actions, the indices will do for cryptography
Like today’s cryptography, actions at the beginning of the 20th century were an emerging market and to a large extent, characterized by significant fragmentation and a generalized lack of public understanding. In 1957, when the S&P 500 was introduced, the financial panorama revolutionized, providing a reference point for investors. This not only legitimized actions as a class of assets, but also raided the way for conventional adoption. Are we in a similar crossroads with cryptocurrency? With the indices ready to play a transforming role in its maturation, it seems to be like that.
The maturation of cryptocurrency and the evolutionary paper of the indices are making indices catalysts for broader cryptographic adoption. For example, the Coendesk 20 index (CD20) It serves as a reference point for the broader cryptographic market, helps provide market information and acts as a basic component for products to expand investors’ opportunities.
A fragmented and volatile market?
The encryption market is a fragmented landscape, a paradox of innovation and instability. While there are more than 23,000 cryptocurrencies, the vast majority suffer from low commercial volume and limited liquidity. This “long tail” includes a significant percentage of projects that never gained traction; Estimates suggest that more than 50 percent of cryptocurrencies launched since 2021 have ceased to exist. A clear example: 1.8 million tokens became “dead coins” only in the first quarter of 2025.
Despite this large volume, commercial activity remains very concentrated in a handful of the upper cryptocurrencies, highlighting the true market fragmentation.
High volatility is a defining characteristic of Crypto’s fragmentation, vividly demonstrated by the dramatic clashes and Bitcoin Toro races. Price “bombs” often appear out of nowhere, and paradoxically, the market can remain stagnant even before significant news. Prices frequently challenge the logical movement after the main ads, only to suddenly increase or fall without an obvious catalyst. This unpredictability underlines how structurally thin and concentrated trade remains throughout the market.
An example of this phenomenon is The approval of the sec of the ether (Eth) Exchange quoted funds (ETF) In May 2024. Despite being an important regulatory milestone, ETH barely moved the day of the ad. A week later, however, it increased 15 percent without discernible new information. These types of delayed and illogical reactions are surprisingly common, highlighting how thin liquidity, concentrated holdings and feelings based on feelings continue to dominate large segments of the cryptography market.
Signs of maturation
Despite its current challenges, the encryption market shows clear maturation signs. The institutional interest is increasing, with the main financial players that invest, associate and develop cryptography -centered products. Regulatory clarity is also improving worldwide.
Key regulatory and institutional milestones
- ETF approvals: Beyond the Bitcoin initial spot and ETH Ethf approval, now extend to Solana and other cryptocurrencies.
- Mica regulation: EU markets in cryptographic assets (Mica) The frame represents the first integral cryptographic license in a level one market. OKX was the first global exchange to ensure a Mica license, which allowed him to offer regulated services to more than 400 million Europeans. Since then, Coinbase, Kraken, Robinhood and Bybit have also obtained mica licenses, the growth of the signaling industry and the broader adoption.
- Stablecoin Genius Law: This new Federal framework of the United States for Stablecoin issues aims to provide regulatory clarity, promote innovation and protect consumers. Recent Circle List in the NYSE, along with the Central Bank digital currency (USDC) Become the stablecoin that fulfilled the EU EU (Adopted by exchanges such as Coinbase, OKX and Binance)Mark a fundamental moment for the stables.
Greater adoption of Stablecoin
Eightcap 2025 data show that Stablecoin payments now represent 18 percent of the monthly deposits, and the most popular deposits are in the connection layer reflecting a broader trend. In 2024, Stablecoins processed an estimated $ 27.6 billion, exceeding the visa and volume of combined Mastercard transactions by 7.7 percent.
The role of the indices
The current cryptographic market is parallel to the sharing market before the S&P 500. The introduction of broad base rates that enter the market marks a significant step forward.
A call to action
Time is critical to develop cryptocurrency rates that can order the current chaos. COINDESK 20, now available in more than 20 investment vehicles worldwide through Eightcap, ML Tech, Wisdomtree and others, exemplifies how indices can provide clarity, transparency and diversified exposure to digital assets. The industry should be based on this base, creating even more solid tools for merchants and investors. The complete integration of digital assets in the global financial ecosystem is not only a possibility, but an inevitability.
– Patrick Murphy, Commercial Director, Eightcap
Ask an expert
Q: Why are cryptographic indices the next logical step for institutional adoption, similar to what the S&P 500 did for actions?
TO: The S&P 500 simplified the complexity, the structure of Bring, the comparative evaluation and the ease of access. Instead of signing all individual shares, investors could access a broad proxy based on rules for exposure to the US stock market. UU. That unlocked billion in capital tickets. Crypto Today is still fragmented, noisy and challenging to compare. It needs the same evolution. Institutional allocatives and many retail investors do not ask “What token should I have?” -They can access the diversified and well balanced exhibition to the asset class. Index products are how crypto becomes invertible at scale. It is not about choosing private currencies, but about delivering exposure through systems based on rules that meet compliance, liquidity and transparency standards. The appearance of crypto-national indexes and systematic strategy wrappers is the necessary evolution to move from speculation to the scalable assignment.
Q: Why does the absence of encryption indexes impede the adoption of institutional allocatives and financial advisors?
TO: Indices are essential tools for allocation, comparative evaluation and communication. Without them, it is almost impossible for institutional investors or advisors to justify exposure to cryptographic within traditional asset allocation frameworks. They lack a reference point for performance, volatility and risk contribution. The advisors cannot model it; CIO cannot subscribe it; The committees cannot approve it. The result is friction through investment, compliance and operational layers. The indices are those that translate the cryptography of an abstract opportunity to a defined and invertible exposure.
Q: How does the indexification of the cryptogram reorganizes the opportunity established for both assignments and systematic strategies?
TO: The indexes create the structure that both assigners and quantitative managers need. For institutions, they offer reference exhibitions that can be modeled, monitored and approved in traditional investment frameworks. For systematic strategies, the indices become usable components: inputs for factors models, coverage layers or allocation signals. But to completely unlock this potential, participants need an institutional infrastructure of heritage management: P&L in real time and risk panels, access to customizable strategy through API and a safe implementation and without custody in first level exchanges. With the help of the correct wealth platform, the indexes pass from passive reference points to dynamic construction blocks: ready to be assigned, negotiate systematically and integrate directly into institutional quantitative workflows.
– Leo Mindyuk, CEO, ML Tech
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