Menu Icon Created with Sketch Beta.
View All News
Photo by Nathan Watson on Unsplash

Over the past several months, investor attention around crypto has focused on the cratering of crypto prices along with the timing of the next crypto bear or bull market. Any financial trading market is prone to speculation, and the industry is often closely compared to the market caps of major cryptocurrencies. What these bull and bear market prices miss, however, is the critical infrastructure and tooling maturing in the background as more developers enter and build tools in crypto – specifically the critical infrastructure companies running behind the scenes to trade, build applications, secure and monitor applications and track identity, compliance and risk at scale. These fundamental infrastructure companies form the basis for the Lux thesis in the computational sciences (Anchorage in custody, FTX in exchange, Goldsky in data infrastructure, Tactic in financial risk & compliance) and I hope to draw greater attention to them with the first-ever Lux Capital index combining publicly traded NYSE companies and publicly traded crypto assets.

Today, I’m excited to announce $LUXDEX – the Lux Web3 Infrastructure Index – capturing companies that are building the underlying security, compliance, infrastructure, network, and exchanges needed to make the benefits of an underlying ledger or smart contracts a reality. Powered by Thematic, the index includes the monitoring and security stack to secure crypto contracts and transactions; the risk and identity stack to enable trustless and compliant interactions; and the data and developer infrastructure to build scalable and reliable applications. It also includes the foundational networks and exchanges enabling trading and entryways into the cryptoworld, ethereum virtual machine (EVM)-compatible chains that serve as foundational building blocks for decentralized apps and payments companies where crypto composes a meaningful percentage of revenue. 

$LUXDEX is the first of its kind to combine publicly listed companies and crypto assets into one index.

We are in the first inning of companies forming the foundations for the crypto data stack (much as we saw develop in the early days of the data stack with FiveTran, DBT & Snowflake), establishing the monitoring and safety standards for the crypto security stack and measuring risk in the midst of regulatory pressures. I’m excited to see this index mature and grow and also become one public proxy of crypto industry maturity.

To be included on my infrastructure index, the company has to fall into one of the subcategories, but can be either a US publicly traded company (e.g. NASDAQ, NYSE) or cryptocurrency company with an exchange-listed token or coin. In addition, the company also has to be a foundational piece of underlying crypto infrastructure – whether that is exchanges, networks, data and developer tooling, or payment rails as well as have revenue from crypto operations (for US public-listed companies) of at least $100M or public market coin capitalizations (for crypto companies) of at least $100M. I chose to exclude any stablecoin or altcoin, crypto gaming and crypto mining companies for simplicity purposes, but could consider reevaluating to add them in future. I also made the intentional choice to include a basket of companies that represent traditional developer cryptocurrencies with the EVM chains where we have seen aggressive developer adoption and app development starting with ethereum, as well as newer chains experiencing rapid growth like Avalanche, NEAR and Cosmos. 

My hope is that this index will help investors and builders alike focus on the objective underlying infrastructure and maturity underpinning the crypto systems versus becoming fixated on speculative prices and hype. The index will be reevaluated every quarter and companies go public and/or have token sales, we will update the index for the companies fitting our criteria.

There’s always been a global race to develop chip technology