Bloomberg has recently collaborated with Galaxy Digital, a financial services firm, to expand its crypto products with the launch of the Bloomberg Galaxy DeFi Index.
Mike Novogratz’s Galaxy Digital joined hands with financial news giant Bloomberg to launch a new crypto index tied to decentralized finance.
On August 19, Galaxy Digital announced that the company would henceforth start offering Galaxy DeFi Index Fund, a passively-managed fund tracking the performance of the sector.
Adding that, the new index will track nine DeFi tokens starting with, serving as the foundation for Galaxy’s new passively-managed fund. Those tokens are Uniswap’s UNI (40%), AAVE (18%), Maker MKR (12.7%), Compound’s COMP (10)%, Yearn Finance YFI (5.4)%, Synthetix SNX (5)%, SushiSwap SUSHI (4.3)%, 0x Protocol’s ZXR (2.8)%, and UMA (1.8%).
Delving into DeFi
In the past years, the pair had experienced several crypto index, recalling 2018, when Bloomberg Crypto Index was launched to track the most liquid tokens in crypto markets. The announcement stated that: “the new DeFi benchmark is owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy”
The head of Product Management for Bloomberg’s Multi-Asset Index business, Alan Campbell stated that: “Decentralized finance is growing as the next major investment theme within crypto. 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.”
“DeFi is the future” said Mike Novogratz, Former hedge fund manager on his Twitter page.
According to the announcement, the tokens selected in the DeFi index were choosing based on institutional trading and custody readiness in the United States as well as the quality of pricing.
Galaxy’s head of asset management Steve Kurz added “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.”