“The Herd Is On The Move,” says Galaxy Digital’s Michael Novogratz who announced today that his company and Bloomberg have partnered to bring a new crypto index focused on transparent benchmarking
Michael Novogratz announced in a tweet this morning that Galaxy Digital Capital Management LP and Bloomberg have paired up and launched the Bloomberg Galaxy Crypto Index (BGCI). Novogratz is the founder of Galaxy Digital and has been a crypto bull for quite some time.
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
According to the announcement by Bloomberg, all crypto assets listed have passed inspection by both Bloomberg and Galaxy Digital. This is high praise for the assets, especially coming from Bloomberg which has been historically a skeptic of crypto, and thus will likely result in more institutional investors coming off the sidelines.
Bloomberg writes that “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 new BGCI does boast the aforementioned diversified exposure, tracking the performance of ten crypto assets. These include stores of value, exchange mediums, smart contract protocols, and privacy coins. These assets are weighted on the index by market capitalization as follows:
Bitcoin Cash 10.65%
Ethereum Classic 1.00%
Alan Campbell, Global Produce Manager for Bloomberg Indices said “Today’s 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.”
The transparency that BGCI aims to provide is likely long awaited by hesitant institutional investors. It will be interesting to see if big money starts coming into these 10 projects and others that may be listed on the BGCI in the future.