Bloomberg, Galaxy Digital Launch Crypto Benchmark Index
The Bloomberg Galaxy Crypto Index will track the performance of 10 digital coins
Bloomberg and Galaxy Digital Capital Management, a digital assets merchant bank headed by former macro hedge fund manager Michael Novogratz, launched on Wednesday a cryptocurrency price index.
The Bloomberg Galaxy Crypto Index (BGCI) offers the “first institutional benchmark for the cryptocurrency market,” utilizing a “rules-based methodology and data” derived from sources that both companies have scrutinized, Bloomberg said in a statement. It added that the index will be market capitalization-weighted and will track the performance of the “largest, most liquid portion of the cryptocurrency market.”
The 10 USD-traded coins to be listed on the BGCI are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), EOS (EOS), Litecoin (LTC), Dash (DASH), Monero (XMR), Ethereum Classic (ETC) and Zcash (ZEC).
The BGCI will be owned and administered by Bloomberg, which already operates several other traditional finance 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," Alan Campbell, Bloomberg Indices' global product manager said in the statement. He added that the launch of the BGCI reflects clients’ growing interest in cryptocurrencies.
Novogratz also commented on the BGCI launch: “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.”
Novogratz, a former hedge fund manager at Fortress Investment Group and Goldman Sachs Group partner, has been one of the most outspoken advocates of cryptocurrencies on Wall Street.
Speaking to CNN’s “Markets Now” on Wednesday, Novogratz said: “It's almost essential for every investor to have at least 1% to 2% of their portfolio in crypto.” Last year, the billionaire revealed that he had invested 10% of his net worth in digital currencies.
Several Wall Street giants have recently entered the crypto sphere. Last week, Goldman Sachs reported that they would begin trading in Bitcoin contracts after being “inundated” with client requests for the service. On Monday, the owner of the New York Stock Exchange (NYSE), Intercontinental Exchange (ICE), showed an interest in allowing its customers to hold and sell Bitcoin. NASDAQ also announced last month it is considering establishing a cryptocurrency trading platform in future.