Bloomberg Partners for Crypto Index05.10.2018
Bloomberg, together with Galaxy Digital Capital Management LP, a leading digital asset management firm founded by Michael Novogratz, today launched the Bloomberg Galaxy Crypto Index (BGCI).
The index is designed to track the performance of the largest, most liquid portion of the cryptocurrency market. The BGCI is market capitalization-weighted and measures the performance of ten USD-traded cryptocurrencies, including Bitcoin, Ethereum, Monero, Ripple, and Zcash. The index constituents are diversified across different categories of digital assets, including stores of value, mediums of exchange, smart contract protocols, and privacy assets.
The creation of the index marks an important step in the evolution of the digital assets space, facilitating diversified exposure as well as independent benchmarking for investors, the companies said. The BGCI utilizes a rules-based methodology and data from sources that have passed both Bloomberg and Galaxy Digital Capital Management’s due diligence processes.
The index is owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy Digital Capital Management. As a new member of the Bloomberg index family, the BGCI offers the first institutional grade benchmark for the cryptocurrency market.
“Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies,” said 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.”
Michael Novogratz, CEO and Founder of Galaxy Digital Capital Management, said, “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.”
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.”
The BGCI contains the following ten cryptocurrencies at inception:
|Current Cryptocurrency Weightings|
For additional information on the methodology, rebalancing, pricing, and governance of the BGCI, visit: Bloombergindices.com
Brett Harrison had joined the crypto exchange in May 2021 from Citadel Securities.
Risk management practices across the crypto ecosystem stress are being tested.
Anticipated Ethereum Merge has increased demand to hedge risk on a regulated venue.
Regulatory clarity will unlock crypto for institutions.
Interest in Ether derivatives is surging ahead of the upcoming Ethereum Merge.