Axios Pro Exclusive Content

Lux Capital launches crypto infrastructure index

Illustration of a pair of binoculars viewing falling 8-bit coins

Illustration: Eniola Odetunde/Axios

Venture capital firm Lux Capital has launched an index for tracking the crypto infrastructure space.

Details: Tracking both public companies and tokens, the index's largest constituents include Polygon, Ethereum, PayPal, and ChainLink. The index is up 28.7% in the last three months against the S&P 500's 2.3% decrease and the 6% gain on the Nasdaq's Crypto Index.

  • Public companies in Lux's index must derive a significant amount of revenue from crypto. That also puts Block and Robinhood on the list.
  • Grace Isford, a principal with Lux who formed the index in partnership with portfolio company Thematic, purposely left out bitcoin, focusing instead on cryptocurrencies linked to "aggressive developer adoption."

What they're saying: "There's a lot of focus on the speculation, hype, and consumer angle. None of those things will even be possible unless you figure out the security, scaling and reliability challenges," says Isford. "It's an opinionated index."

Of note: By combining both publicly-traded companies with token-based businesses in one index, Isford is effectively recognizing that Web2 companies will be a part of her vision of a futuristic Web3 world.

The bigger picture: Right now, the index is largely for tracking the ups and downs of the infrastructure space. But Isford is hoping the index will be publicly traded one day — ideally on a major stock exchange.

Go deeper