Mike Novogratz’s Galaxy Digital and Bloomberg Together Will Launch a Crypto Price Index
On Wednesday, May 9, Bloomberg broke an official news stating that it has joined hands with Galaxy Digital Capital Management LP to launch their own cryptocurrency index called Bloomberg Galaxy Crypto Index (BGCI). The launch of this Crypto Price Index by such big and prominent players of the financial space will be giving the digital currency market a new boost and install more confidence among institutional players to join the crypto space.
As explained by Bloomberg, the crypto price index will be there to track the performance of some of the biggest digital currencies with very high liquidity. The BGCI will be weighted based on the market-cap of the cryptos and will measure the performance of ten digital currencies like 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%), and zcash (1%).
Bloomberg also mentions that the BGCI index will make use of a "rules-based methodology and data" which is derived from sources which both the companies have decided together. However, neither of them gave more details regarding this.
The two companies stated that the formation of the BGCI index is a very vital step in the future growth of digital currency space. The companies said that this will provide investors with diversified exposure along with the facility of independent benchmarking/
While commenting on this partnership, Alan Campbell, Global Product 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.”
Mike Novogratz, CEO and Founder of Galaxy Digital Capital Management, said, “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.”
On his Twitter handle, Novogratz tweeted: “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.”
Mike Novogratz is an ex-executive of Goldman Sachs and has spent more than a decade of his career is managing big financial funds and portfolios. Novogratz has raised around $200 million for launching its Galaxy digital crypto merchant-bank that will provide services for asset management, trading, principal investing and advisory work.