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Good morning and welcome to the Hodl Report
Imagine waking up to find S&P elbowing its way into the crypto party—late, yes, but armed with an index and wearing institutional cologne strong enough to give BlackRock whiplash. In today’s Hodl Report, we’re digging into what the new crypto-equity index actually means (hint: it’s more than just a ticker tape parade) and why the rise of passive investing might quietly be draining the lifeblood from your favorite altcoin bag. It’s alpha and angst, all in one issue. Scroll down, soak it in—and don't miss our sponsors keeping this circus running for free.
Pelosi Made 178% While Your 401(k) Crashed
Nancy Pelosi: Up 178% on TEM options
Marjorie Taylor Greene: Up 134% on PLTR
Cleo Fields: Up 138% on IREN
Meanwhile, retail investors got crushed on CNBC's "expert" picks.
The uncomfortable truth: Politicians don't just make laws. They make fortunes.
They vote on regulations after shorting affected sectors. They approve budgets after buying defense stocks. They debate policy while holding calls.
It's not illegal. It's just invisible to you.
Most Congress trades get reported 45 days later, when profits are locked in. AltIndex tracks every Congressional transaction within 24 hours.
And each week, we send you the 3 biggest positions in our newsletter before mainstream news reports them.
Then we factor those Congress trades into the AI stock ratings on our app (along with other overlooked stock signals like Reddit chatter and web traffic). Get a free 7-day trial when you subscribe to the newsletter.
Congress filed 7,810 new stock buys this year as of July. You pay for their salaries…
Why not use their investing strategies for yourself?
Past performance does not guarantee future results. Investing involves risk including possible loss of principal.
Editors Corner
The Great Flattening: Why Index Funds Will Kill 90% of Altcoins
I’m gonna say something that might sting a little: most altcoins are finished. Not today, not tomorrow—but soon. And it won’t be because of regulation, or hacks, or Vitalik deciding to quit crypto and start a mushroom farm in Canada.
It’ll be because of index funds.
Yep, the same boring, buttoned-up products that made traditional investing dull as hell are coming for crypto—and that’s not necessarily a bad thing. It just means the game’s changing.
Here’s what I mean.
When money flows into crypto ETFs and index products, it doesn’t trickle down evenly. It goes where the liquidity is. That means Bitcoin, Ethereum, maybe Solana, maybe one or two others depending on the index rules. Everything else? Ignored. Forgotten. Illiquid.
Passive capital doesn’t care about your narrative, your community, or your roadmap to “revolutionize DeFi.” It just cares about market cap, volume, and custody readiness. The spreadsheet doesn’t give a damn how hard your devs are grinding—it just needs exposure to the top five assets so the fund doesn’t get yelled at by compliance.
So as the big money moves in, the top of the market gets thicker, and everything below the top 20 starts to look like a microcap penny stock. The coins that survive will be the ones institutions can buy: liquid, regulated, easy to custody, and relatively uncontroversial.
That’s the Great Flattening.
It’s not sexy, it’s not fun, but it’s how every maturing market evolves. Once the index crowd shows up, price discovery gets replaced by passive allocation. The degens move on, and the tourists come in with retirement accounts.
If you’re still chasing 200x gems, enjoy it while it lasts—because soon, most of those coins won’t even exist on the exchanges you use. The indexes will have eaten the market, and crypto will finally be… boring.
Honestly? That might be the most bullish thing yet.
Trivia: Ethereum’s Most Expensive Gas War
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Wall Street Isn’t Warning You, But This Chart Might
Vanguard just projected public markets may return only 5% annually over the next decade. In a 2024 report, Goldman Sachs forecasted the S&P 500 may return just 3% annually for the same time frame—stats that put current valuations in the 7th percentile of history.
Translation? The gains we’ve seen over the past few years might not continue for quite a while.
Meanwhile, another asset class—almost entirely uncorrelated to the S&P 500 historically—has overall outpaced it for decades (1995-2024), according to Masterworks data.
Masterworks lets everyday investors invest in shares of multimillion-dollar artworks by legends like Banksy, Basquiat, and Picasso.
And they’re not just buying. They’re exiting—with net annualized returns like 17.6%, 17.8%, and 21.5% among their 23 sales.*
Wall Street won’t talk about this. But the wealthy already are. Shares in new offerings can sell quickly but…
*Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.
Today’s Report
S&P Launches Crypto-Equity Index. Institutional FOMO Imminent.
Our Report
S&P Dow Jones Indices has just dropped something new: the Digital Markets 50, the first hybrid index blending 15 cryptocurrencies with 35 crypto‐adjacent stocks. It’s built to tread the fine line between exposure and risk, capping any single asset at 5% to prevent Bitcoin or a mega‐stock from dominating. And here’s the twist: it will also be tokenized via a blockchain platform (Dinari’s dShares), opening a more “on‑chain” route for investors to access it. With standard rebalancing, eligibility thresholds, and S&P’s name behind it, this is a play for institutional legitimacy in the crypto space.
Key Points
Hybrid composition: 15 tokens + 35 equities tied to blockchain/crypto operations.
Weight cap: No single asset can exceed 5% of the index, to prevent concentration in big names.
Eligibility rules: Crypto constituents need a market cap of ≥ $300 million; stocks need ≥ $100 million.
Quarterly rebalancing & governance: The index will follow S&P’s standard index maintenance rules.
Tokenization path: Dinari will issue a token that tracks this index, tradable on its dShares platform by end‑2025.
Market timing: The launch is arriving amid a bullish crypto environment and more favorable U.S. regulation vibes.
Relevance & Takeaways
S&P’s move isn’t just another index—it’s a statement. By fusing equity and crypto exposure in one product, S&P is nudging crypto further into the institutional mainstream. The weight cap is a smart guardrail: it forces diversification, limits “Bitcoin bias,” and allows emerging names to gain traction.
Tokenizing this index is equally telling. It hints at a future where conventional indices and tokenized on-chain instruments blur. If this works, asset allocators could buy “the crypto sector” as easily as they buy the S&P 500.
Of course, risks remain. Despite the hybrid nature, this is still a high-volatility product—crypto streaks will dominate. And tokenization introduces operational, regulatory, and custody challenges not present in plain‑vanilla indices. If there’s a hiccup in how Dinari issues or settles the token, it could undermine confidence.
But in the narrative war, S&P just upped its position. It’s laying down infrastructure not just for passive exposure but for legitimacy. For those long on “crypto as mainstream asset class,” this is a signal worth watching. Think: what will allocation committees say when they can “buy crypto via S&P”? The adoption argument just gained momentum.
Today’s Top News
HEADLINES
Global crypto ETFs attract record $5.95 billion as Bitcoin scales new highs — A massive inflow into crypto ETFs last week signals strong institutional demand, reinforcing the rally in Bitcoin and broader markets. The surge indicates growing confidence in digital assets from traditional finance. It also suggests ETF products are becoming a preferred gateway for crypto exposure.
NYSE parent to invest up to $2 bn in prediction platform Polymarket — ICE (owner of NYSE) plans a major investment in Polymarket, positioning itself into crypto-based prediction markets and tokenization ventures. This move may legitimize on-chain betting and forecasting platforms. It also represents a strong institutional endorsement of decentralized finance innovation.
S&P launches new “Digital Markets 50” index combining crypto & stocks — The index will include both cryptocurrencies and blockchain/crypto‑related stocks, offering a diversified exposure and signalling mainstream integration. It reflects traditional finance’s increasing interest in tokenized and crypto-tied assets. The move may also fuel ETF products tracking the index.
Trump Media files for “Crypto Blue Chip ETF” with SEC — The proposed ETF would allocate across BTC, ETH, SOL, XRP, and CRO, aiming to simplify exposure for retail investors. It’s an unusual political-media crossover into crypto finance. The filing could spark regulatory debates around branding and content.
Market Trendline
PRICE ACTION
Markets remain in bullish posture, buoyed by heavy flows into crypto ETFs (nearly $6B last week).
Bitcoin cracking new highs above $125K signals institutions aren’t just watching, they’re executing.
Still, volatility is elevated and every macro whisper is being treated like a trigger.
Notable Movers
Bitcoin (BTC): Riding momentum, BTC has pushed past prior resistance zones, flirting with $126K. The challenge now is digesting gains.
Ethereum (ETH): Outpacing many alts, ETH is trying to reclaim $4,700+ after pulling back earlier. If momentum persists, we could see a retest of ATH territory.
Select Alts / Micro‑caps: While major alts see steady behavior, smaller‑cap tokens are exhibiting outsized bursts—some daily pumps in the +20–60% zone. But many of these lack sustainable volume, so they’re high-risk plays.
Mining / Infrastructure Exposure: Bitcoin miners and infrastructure plays are rallying, partly under macro-juice and partly in response to cross‑sector news.
Macro View
The backdrop is liquidity pouring into digital assets at scale. Favorable regulatory tone (especially in the U.S.) and ETF inflows are creating what feels like a structurally different regime than the 2021–22 cycles.
That said: we’re not beyond sharp retracements. Big moves higher attract leverage, which also breeds blowups when sentiment shifts. Monitor sentiment, on-chain funding rates, and macro news flow tightly.
Bottom Line
Crypto is entering a new chapter: not just speculative upside, but institutional gravity working in its favor. BTC and ETH are carving out new highs, and that changes the reference points.
But this is not a “buy and forget” regime. Every rally run demands respect for overhead liquidity, leverage, and macro fragility.
Stay tactical. Don’t lean into greed on red days—and definitely don’t get too comfortable on green ones.
Today’s Top Meme
MEME GOD
My accountant going through all my trades to report a $0.37 profit
— #Not Jerome Powell (#@alifarhat79)
10:07 PM • Sep 24, 2025
Today’s Top Tweet
TWITTER NEVER SLEEPS
THIS IS HUGE.
S&P just launched its own crypto index called Digital Markets 50 (DM50).
Here are the details:
- Includes 15 cryptocurrencies and 35 crypto-related stocks
- No single asset exceeds 5% weighting
- Cryptos must have a $300M+ market cap to qualify— #Milk Road (#@MilkRoadDaily)
1:31 PM • Oct 7, 2025
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.