Bloomberg and Galaxy Digital Launch DeFi Index08.23.2021
Bloomberg, along with Galaxy Digital, announced the expansion of its crypto offering with the launch of the Bloomberg Galaxy DeFi Index (ticker: DEFI). Alongside the index launch, Galaxy Digital’s funds platform, Galaxy Fund Management, is now offering the Galaxy DeFi Index Fund, a passively managed fund tracking the performance of DEFI.
The benchmark is designed to measure the performance of the largest decentralized finance protocols by market value that offer financial services without a central financial intermediary, such as brokerages, exchanges, or banks. https://t.co/pK4IbvoFme
— Bloomberg LP (@Bloomberg) August 20, 2021
The benchmark is designed to measure the performance of the largest decentralized finance (DeFi) protocols by market value that offer financial services without a central financial intermediary, such as brokerages, exchanges, or banks. DeFi is an emergent sector of digital assets that replicate financial functions such as borrowing, lending, and exchanging assets. The benchmark is owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy.
“Decentralized finance is growing as the next major investment theme within crypto,” said Alan Campbell, Head of Product Management for Bloomberg’s Multi-Asset Index business. “As liquidity and institutional custody solutions continue to grow, DeFi has become an increasingly compelling option for institutional investors, and we’ll continue working with Galaxy to expand our crypto index offering.”
“Galaxy continues to pioneer inroads for institutions seeking exposure to the innovation happening within the crypto ecosystem,” said Steve Kurz, Partner and Head of Asset Management at Galaxy Digital. “The blockchain-based infrastructure behind DeFi is maturing at an accelerating rate and clear examples of how this new technology can disrupt financial services are emerging in real-time. This partnership with Bloomberg and our DeFi Index Fund provides investors with data and tools that deliver calculated exposure to the future of financial services.”
The constituents represented in DEFI are selected based on institutional trading and custody readiness in the US, as well as quality of pricing. Each constituent will represent a hold of no more than 40% of the Index and no less than 1% of the benchmark’s overall value. DeFi protocols will be considered for addition or removal to or from the Index on a monthly basis.
As of August 1, 2021, the Index consisted of the following assets and weightings:
- UNI Uniswap 40.0%
- AAVE AAVE 18.0%
- MKR Maker 12.7%
- COMP Compound 10.0%
- YFI Finance 5.4%
- SNX Synthetix 5.0%
- SUSHI SushiSwap 4.3%
- ZXR 0x 2.8%
- UMA UMA 1.8%
Bloomberg provides an independent, transparent approach to indexing for customers across the globe, including customized crypto index solutions for asset managers. For more information, visit Bloomberg Indices.
Bloomberg clients can access the index using the ticker DEFI Index <Go>.
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The new benchmarks, with Uniswap launched this year, capture 40% of value in DeFi protocols on Ethereum.