Last December Bloomberg added Cryptocurrencies to its globally ubiquitous Terminals. Now, Bloomberg and Galaxy Digital Capital Management LP, a digital asset management firm founded by Michael Novogratz, have 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.
“Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies,” explained Bloomberg Indices Global Product Manage Alan Campbell. “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.”
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.
[clickToTweet tweet=”Galaxy Digital CEO @novogratz: ‘The Bloomberg Galaxy Crypto Index brings unprecedented transparency to the #crypto markets…’ @TheTerminal” quote=”Galaxy Digital CEO @novogratz: ‘The Bloomberg Galaxy Crypto Index brings unprecedented transparency to the #crypto markets…’ @TheTerminal”]
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 Bloomberg Galaxy Crypto Index brings unprecedented transparency to the crypto markets,” stated Galaxy Digital Capital Management CEO and Founder Michael Novogratz. “We are excited to help drive the decentralized revolution forward through the creation of BGCI.”
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 reportedly offers the first institutional grade benchmark for the cryptocurrency market.
“We are thrilled to partner with Bloomberg on the BGCI,” added Galaxy Digital Capital Management Head of Asset Management Steve Kurz. “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
Bitcoin Cash 10.65%
Ethereum Classic 1.00%
Founded by Novogratz, a former Principal and Chief Investment Officer of the Fortress Macro Funds, and a former Partner at Goldman Sachs, Galaxy Digital Capital Management LP manages capital on behalf of external clients in three distinct business lines: Index Fund Management, Blockchain Ecosystem Funds, and Opportunistic Funds.
So excited to announce our partnership with Bloomberg. The herd is on the move. This is an important piece of the architecture that institutional accounts need to treat crypto as a new asset class. https://t.co/TRSY97XjCl
— Michael Novogratz (@novogratz) May 9, 2018