Galaxy Digital Capital Management, the digital asset management firm, founded by an ex-Goldman Sachs partner and staunch bitcoin proponent Mike Novogratz launched an index together with financial news giant Bloomberg. According to a joint statement, issued by both companies, the index will track the performance of 10 most prominent virtual currencies that amount to the majority of the overall crypto market.
The Bloomberg Galaxy Crypto Index (BGCI) will track the biggest and most liquid virtual currencies, based on market cap and other factors, against the US dollar. The monitored cryptocurrencies will include bitcoin, ethereum, ripple, bitcoin cash, EOS, litecoin, dash, monero, ethereum classic and zcash. BCGI will be owned and administered by Bloomberg using rules-based methodology and data, gathered by both companies. Further details are yet to be revealed.
The demand for such a product reflects growing interest from institutional investors, whose primary concern is the lack of transparency in the crypto market. Mr. Novogratz has expressed his belief that BCGI will bring unprecedented transparency to the crypto industry, which will result in increased investment from major financial players.
According to him, “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.”
Bloomberg also seems to be excited by the collaboration as their Global Product Manager Alan Campbell claimed that, “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 launch of the index somewhat ironically reflects on the statements from Bloomberg founder and majority shareholder Michael Bloomberg, a member an exclusive billionaire club, advocating blockchain but despising bitcoin and other cryptocurrencies. Notable members of the crew include Bill Gates, Warren Buffet and Charlie Munger among others.
Bloomberg already operates numerous other indices, connected to the traditional finance industries such as commodities, global fiat currencies, and others. The news comes in a period of increased attention towards cryptocurrencies from leading financial organizations. This week, the New York Stock Exchange has announced plans to develop its own bitcoin trading platform, while at the start of the month Goldman Sachs confirmed the creation of the first bitcoin trading desk in Wall Street. Last month NASDAQ CEO said the company is open to creating a crypto exchange.
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