Bloomberg announced today that they are teaming up with Galaxy Digital Capital Management, founded by Michael Novogratz, to create the Bloomberg Galaxy Crypto Index (BGCI). The index is the world’s first institutional-grade benchmark for cryptocurrency markets, designed to track the most liquid portion of the crypto market.
The index is market capitalization-weighted, measuring the performance of ten major cryptocurrencies including Bitcoin, Ethereum, Ripple, Zcash, Monero and others – ranking factors include mediums of exchange, smart contract protocols, privacy assets and stores of value.
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
Galaxy Digital Capital Management is an asset management firm focused on crypto assets. The firm manages capital on behalf of external clients in three distinct business lines: Blockchain Ecosystem Funds, Opportunistic Funds, and Index Fund Management.
The launch of the index is another step towards institutional adoption of the crypto markets. Bloomberg has stated that “the BGCI offers the first institutional benchmark for the cryptocurrency market.”
Alan Campbell, Global Product Manager for Bloomberg Indices, remarked:
“The launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies… 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”
Crypto Assets Tracked by the BGCI
The cryptocurrencies being tracked by the BGCI include:
- Bitcoin (30%)
- Ethereum (30%)
- XRP (14.14%)
- Bitcoin Cash (10.65%)
- EOS (6.11%)
- Litecoin (3.77%)
- Dash (1.67%)
- Monero (1.66%)
- Ethereum classic (1%)
- Zcash (1%)
Novogratz’s Next Crypto Project
The former wrestler, helicopter pilot, billionaire, Goldman Sachs trader and Bitcoin enthusiast Michael Novogratz has decided to launch yet another cryptocurrency project.
After coming out of retirement to start a $500 million dollar crypto hedge fund, Novogratz quickly decided to shelve the project to launch Galaxy Digital Capital Management LP instead.
Novogratz has stated he believes the index will bring “unprecedented transparency” to the market.
Cover Photo by Luca Bravo on Unsplash
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