A new cryptocurrency index was launched via collaboration between Bloomberg and Galaxy Digital Capital Management, an asset management firm that was founded by world-famous investor Mike Novogratz. This news marks the inception of the first institutional grade benchmark for the cryptocurrency market.
The Bloomberg Galaxy Crypto Index (BGCI) has been created to track the performance of the largest and most liquid part of the cryptocurrency market. The BGCI is weighted by market capitalisation and will measure the performance of ten USD traded crypto coins including Ethereum, Bitcoin, Ripple, Monero and Zcash. Constituent markers of the index will include different categories of digital assets such as stores of value, smart contract protocols, privacy assets, and mediums of exchange.
An important step
The launch of this index is an important step in the development of the digital assets space. Not only will it facilitate a more diversified exposure but it will allow for independent benchmarking for investors and other interested stakeholders. The BGCI will utilise a rule-based methodology from a range of sources that have passed through a stringent due diligence process created by Bloomberg and Galaxy Digital Capital Management.
The index itself will be owned and administered by Bloomberg Index Services Limited and has been co-branded with Galaxy, a company that was formed by Novogratz following a long career as the Principal and Chief Investment Officer of Fortress Macro Funds, and a former partner at Goldman Sachs.
“The Bloomberg Galaxy Crypto Index brings unprecedented transparency to the crypto markets. We are excited to help drive the decentralized revolution forward through the creation of BGCI,” Novogratz said in the statement.
Growing interest in crypto
“Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies,” stated Alan Campbell, Global Product Manager for Bloomberg Indices. “The index brings our rigorous approach to index construction to cryptos and will provide investors with a transparent benchmark to gauge the performance of the broader market.”
Steve Kurz, Head of Asset Management at Galaxy Digital Capital Management, added: “We are thrilled to partner with Bloomberg on the BGCI. The index’s independent, rules-based methodology provides a strong foundation on which the cryptocurrency ecosystem will continue to grow and mature.”