In today’s crypto for advisers newsletter, Patrick Murphy from Eightcap, provides insight into the maturation of crypto as an asset and compares the development of indexes with S&P’s early days.
Then Leo Mindyuk answers MLTech questions about indexes in questions.
Happy reading!
– Sarah Morton
What S&P 500 did for stocks, indexes will do for krypto
Like crypto today, shares in the early 20th century were a growing and largely unregulated market, characterized by significant fragmentation and lack of widespread public understanding. In 1957, when the S&P 500 was introduced, it revolutionized the economic landscape, giving a benchmark for investors. Not only did this legitimize shares as an asset class, but it also paved the way for the mainstream resolution. Are we at a similar intersection of cryptocurrency? With indexes that are ready to play a transformative role in its maturation, it seems to be so.
Cryptocurrency’s maturation and the evolving role of indexes make indexes catalysts for wider crypto uptake. For example, Coindesk 20 -Index (CD20) Serves as a benchmark for the wider crypto market, helps provide market insights and acts as a building block for products to expand investor opportunities.
A fragmented and fleeting market?
The Crypto market is a fragmented landscape, a paradox of innovation and instability. While there are over 23,000 cryptocurrencies, the vast majority of low trading volume and limited liquidity suffer. This “long tail” includes a significant percentage of projects that never got traction; Estimates suggest that over 50 percent of cryptocurrencies launched since 2021 have ceased to exist. A sharp example: 1.8 million tokens became “dead coins” in the first quarter of 2025 alone.
Despite this pure volume, trade activity remains heavily concentrated in a handful of top cryptocurrencies, which highlights the market’s true fragmentation.
High volatility is a defining feature of Crypto’s fragmentation, vividly demonstrated by Bitcoin’s dramatic crashes and bull races. Price “pumps” often appear out of the blue, and paradoxically, the market can remain stagnant, even in the light of significant news. Prices often defy logical movement after major messages, only to spike or fall without an obvious catalyst. This unpredictability emphasizes how structurally thin and concentrated trade remains across the market.
An example of this phenomenon is SEC’s approval of ether (Eth) Exchange -traded funds (ETFS) in May 2024. Despite being a larger regulatory milestone, ETH hardly moved on the day of the message. A week later, however, it rose 15 percent without any noticeable new information. These forms of delayed and illogical reactions are surprisingly common, highlighting how thin liquidity, concentrated holdings and mood-driven trade continue to dominate large segments of the crypto market.
Signs of maturation
Despite its current challenges, the crypto market shows clear signs of maturation. Institutional interest increases where large financial players invest, collaborate and develop cryptophocused products. Regulatory clarity also improves globally.
Key Regulatory & Institutional Mileste
- ETF -GODS: OUTSIDE THE INFORMATION SPOT BITCOIN And ETH ETF approvals, they now extend to Solana and other Cryptocurrencies.
- Mica regulation: EU markets in crypto assets (Glitter) Frames represent the first comprehensive crypto license in a level-one market. OKX was the first global exchange to secure a mica license, enabling it to offer regulated services to over 400 million Europeans. Since then, Coinbase, Kraken, Robinhood and Bybit have also achieved mica licenses, signaling of industry growth and wider adoption.
- Stablecoin Genius Act: This new American federal framework for stableecoin issuers aims to provide legislative clarity, promote innovation and protect consumers. Circle’s recent listing of sneezing, combined with Central Bank Digital Currency (USDC) become the EU’s preferred compatible stableecoin (adopted by exchanges such as Coinbase, OKX and Binance)marking a central moment for stableecoins.
Growing stableCOin -forging
Eightcaps data from 2025 shows that stableCOin payments are now accounting for 18 percent of the monthly deposits and the most popular of these deposits are in Tether that reflects a wider trend. In 2024, StableCeCoins dealt with $ 27.6 trillion that surpassed Visa and Mastercard’s total transaction volume by 7.7 percent.
The role of indexes
The current crypto market is parallel to the stock market before the S&P 500. The introduction of broad -based indices that come on the market marks a significant step forward.
A call for action
Time is critical of developing cryptocurrency indexes that can bring order to the current chaos. Coindesk 20, now available in over 20 investment vehicles globally through OtteCap, ML Tech, Wisdomtree and others, exemplifies how indexes can provide clarity, transparency and diversified exposure to digital assets. The industry must build on this foundation and create even more robust tools for dealers and investors. The full integration of digital assets in the global economic ecosystem is not only an option but an inevitability.
And Patrick Murphy, Chief Commercial Officer, Outcap
Ask an expert
Question: Why is the crypto index the logical next step for institutional adoption, similar to what the S&P 500 did for shares?
ONE: The S&P 500 simplified complexity, which brings structure, benchmarking and easy access. Instead of having to sign any individual stock, investors could access a broad, rules -based power of attorney for US market exposure. The unlocked trillion in capital flow. Crypto today remains fragmented, noisy and challenging for benchmark. It needs the same development. Institutional allocation and many retail investors do not ask “Which token should I own?” -They ask how to access diversified, well -balanced exposure to the asset class. Index products are how crypto becomes investable in scale. It’s not about choosing certain coins, but about providing exposure through rules -based systems that meet compliance, liquidity and transparency standards. The emergence of crypto-native indices and systematic strategy wrappers is the necessary development to move from speculation to scalable allocation.
Question: Why does the absence of crypto indexes adopt the adoption of institutional allocation and financial advisers?
ONE: Index are important tools for allocation, benchmarking and communication. Without them, it is almost impossible for institutional investors or advisers to justify crypto exposure within a traditional framework for assigning asset. They lack a reference point for performance, volatility and risk contribution. Consultants cannot model it; CIOs cannot sign it; Committee cannot approve it. The result is friction across investments, compliance and operational layers. Indexes are what translates crypto from an abstract option to a defined, invested exposure.
Question: How to transform the indexification of the crypto possibility of both all -allors and systematic strategies?
ONE: Index creates the structure that both allocation and quantum conductors need. For institutions, they offer benchmarkable exposures that can be modeled, monitored and approved within traditional investment frameworks. For systematic strategies, indexes become useful components: Input for factor models, cover layers or allocation signals. But to fully unlock this potential, participants need an institutional wealth management infrastructure: Real time P&L and Risk Dashboards, Adaptable Strategy Access Via API and Secure, Non-Parent Authority Installation Across Top-Tier exchanges. Using the right wealth platform, indexes from passive benchmarks to dynamic building blocks: Ready to be assigned, traded systematically and embedded directly in institutional quantum work.
– Leo Mindyuk, CEO, ML TECH
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