Bloomberg Launches Cryptocurrency Index Platform
The Bloomberg Galaxy Crypto Index
Bloomberg has partnered with Galaxy Digital Capital to establish the Bloomberg Galaxy Crypto Index (BGCI). The index will provide trusted asset tracking of the top 10 cryptocurrencies.
BGCI is part of the Bloomberg Index Services Limited catalog and is offered by the company. The platform applies institutional-grade benchmarking standards for the cryptocurrencies.
Alan Campbell – Bloomberg Indices Global Product Manager – commented on the launch, saying: “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.”
How It Works
BGCI will be used to monitor and track the performance of the 10 largest cryptocurrencies by market cap. To ensure accuracy of asset performance, Bloomberg and Galaxy Digital set forth a due-diligence framework.
The ten cryptocurrencies that will be contained in the BGCI at launch are Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Dash, Monero, Ethereum Classic, and Zcash.
The maximum and minimum share for an asset in the index is 30 percent and 1 percent respectively. Bitcoin and Ether will each make up the lion share of the index, representing 30 percent each.
Steve Kruz – Asset Management Chief at Galaxy Digital – commented on the structure of the BCGI, saying: “We are thrilled to partner with Bloomberg on the BGCI. The index’s independent, rules-based methodology provides a strong foundation on which the cryptocurrency ecosystem will continue to grow and mature.”
The BGCI Could Become The S&P 500 For Crypto
Mike Novogratz – Founder of Galaxy Digital Capital Management LP – described the index as a major milestone in the march towards mainstream adoption of the technology.
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
Novogratz – a bitcoin proponent, billionaire investor, and former Goldman Sachs trader – commented on the importance of the BGCI, saying: “We wanted an institutional player for the whole ecosystem, and I think it’s important for the crypto ecosystem. You’re starting to see more institutional participation, and what they’re looking for is this architecture — here’s an index that will feel like the S&P 500 in a few months, that people can benchmark themselves against.”