THE DAT COMPANY THAT'S INCLUDED IN THE RUSSELL INDEX CAN'T SAVE ETHERWOOD

Photo by Eric Foresight News

This week, the FTSE Russell published a preliminary selection list of the 2026 Russell 3000 index, an adjustment to the index composition unit that was added to the multiple encrypted currency concepts unit, with the addition of the CoreWeave (CRWV), the Irene Limited (IREN) and the Galaxy Digital Holdings (GLXY)。

In addition, Bitmine (BMNR) and Sharplink (SBET) and Forward Industries (FWDI) of SOL DAT were listed. If there are no surprises before June 29, then the tens of billions of dollars of passive funds that track the Russell Index will have to be allocated to them, regardless of the personal attitude of the fund manager to encrypted money。

This is certainly good news for investors in the encryption concept unit, but it is difficult to say about the encrypted currency itself。

What's the Russell Index

The Russell Index System, managed by the London Stock Exchange Group, FTSE Russell, is one of the most influential United States stock benchmarks in the world. The Russell 3000 index covers the top 3000 companies in the market value of the United States stock market, representing about 98 per cent of the United States investable stock market. Two core sub-indicators derived from it: Russell 1000 (large capitalization, former 1000 companies) and Russell 2000 (small capitalization, later 2,000 companies) are also important components of the capital market。

In June of each year, FTSE Russell makes a full adjustment based on market value data at the end of April. This frequency will be increased to semi-annual (June and November) from 2026 to reflect market changes more quickly。

As of 2026, about $20 trillion of assets were based on the FTSE Russell index, of which the Russell United States index system alone carried approximately $10.6 trillion. This means that any entry into Russell Index will immediately become a target for the allocation of large amounts of passive funds。

Funding for the follow-up of the Russell Index comes mainly from two types of products: ETF and the Index Fund. In the case of Russell 2000, the largest tracking tool is the iShares Russell 2000 ETF (IWM) in Beled, with assets management of about $75 billion, with a daily turnover of more than 26 million shares, one of the most liquid small capitalization shares in the world. The second is Vanguard Russell 2000 ETF (VTWO), which manages approximately $13.6 billion in assets at a rate of 0.07 per cent, which is the preferred of long-term passive investors. There are also a number of institutional products such as the Vanguard Russell 2000 Index Common Fund (VRTIX) and the Russell 2000 Index Fund in Beled。

These funds are managed in the form of “passive management”: Their sole objective is to replicate the performance of the index as accurately as possible, rather than to proactively select units. Thus, when a stock is included in the index, these funds must be purchased with weights after the adjustment has become effective; similarly, the subject matter that has been excluded will also be sold out. This mechanism has made Russell Index Adjustment Day (usually the last Friday of June) one of the highest trading days of the year for the United States stock, with a record of nearly $22 billion on the day of the adjustment in 2024。

Historical data show that companies included in the Russell Index usually experience significant price fluctuations before and after adjustment. According to a number of studies, newly incorporated Russell 2000 companies have an average price increase of 5 to 10 per cent in the short term following the entry into force of the adjustment, which is entirely due to the compulsory purchase of passive funds. This effect is likely to be more pronounced for the relatively small market value of Bitmine, which is a relatively low-mobility encrypted currency concept unit。

FOR DAT COMPANIES, THE INCREASE IN SHARE PRICES CAUSED BY PASSIVE PURCHASES IS MORE CONDUCIVE TO THE PURCHASE OF MORE ENCRYPTED CURRENCY BY ADDITIONAL STOCK. IF FINALLY RECOGNIZED AS PART OF THE RUSSELL INDEX, THE "FLYING WHEEL" THAT HAD TO BE DONE WITH HEAT, CAN NOW BE ACHIEVED WITH PASSIVE FUNDS。

DAT SHARES BENEFIT, ETH NOT NECESSARILY

Just a few days before the Russell Index list was released, one of the most influential voices of the ITA community, the Bandles co-founder, David Hoffman, cleared all ETH holdouts。

Hoffman’s explanation is not to look down on the ETA network itself, but rather to say that he “extremely appreciates the future of the ETA network” and that the problem is the central narrative of “ETH is money”. In Hoffman, it seems to be essentially a "giver, not a demandr," which provides the world with the safest block space at cost, monetizes global assets at cost, and protects billions of dollars in the DeFi agreement at cost. "All transactions are free of charge" are the essence of open-source software, and they are the power of the hotel, but they run counter to the logic of "value-added."。

To be blunt, the ETA is the most successful non-profit organization in human history, but it is not structured to give priority to ETH. It's not a flaw, it's a characteristic. In his view, only a fraction of the success of the Taifeng network and its ecosystem would be reflected in ETH prices. The application layer and L2 services are capturing most of the value, and the Rollup Centralization route means that L2 earns 97% of the profits, while ETH receives only a small share。

THIS REVEALS A STRUCTURAL DILEMMA. DAT STOCK PRICES CAN BE ENHANCED INDEPENDENTLY BY THE RULES OF THE TRADITIONAL FINANCIAL SYSTEM (INDICATORIZATION, INSTITUTIONAL ALLOCATION, EQUITY PREMIUM) AND EVEN GENERATE PREMIUM TRANSACTIONS VIS-À-VIS THEIR HOLDINGS OF ENCRYPTED ASSETS. BUT WHEN THESE COMPANIES ACQUIRE CAPITAL IN THE SECONDARY MARKET, THESE FUNDS DO NOT FLOW DIRECTLY TO ETH ITSELF。

In view of the low market value of DAT companies and the small volume of even passive inflows, the increase in stock prices is likely to be very limited. On the other hand, both the Taifung and Solana are currently facing a price dilemma for tokens, and DAT’s offers may offset some of the pressure on sales, but they cannot prevent the market from giving higher valuations for the public chain。

In August 2025, it was built at a record high of nearly $5,000, while it is now around $2,000. In nine months after prices fell by almost 60 per cent, Bitmine bought between 3.6 million and 3.7 million ETHs by a company, but this did not stop the price from going back。

Concluding remarks

The Russell Index, which is open to encrypted money companies, is undoubtedly another milestone in the integration of traditional finance with the digital asset world. For companies such as CoreWeave, Iren and Galaxy, this means wider institutional recognition, more stable capital inflows and higher market liquidity. But when DAT is faced with the same inflows, the result may not be to benefit the lower end of encrypted currency assets。

Now, the narrative of "ETH is money" is giving way to the reality that "ETH is public infrastructure", as is the case with a series of public chains, such as Solana, where rising chain revenues and expectations of buy-backs may raise the price of tokens in the short term, but there is a hidden ceiling. How to introduce new narratives for the value of tokens is probably the most important issue for reflection at this time。