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Bloomberg said on Thursday that it will create an index collaborating with Galaxy Digital that would track nine distinct decentralized finance or DeFi projects.
Uniswap (UNI), Aave (AAVE), Maker (MKR), Compound (COMP), Yearn.Finance (YFI), Synthetic (SNX), SushiSwap (SUSHI), 0x (ZXR), and Uma (UMA) are among these initiatives as of Aug. 1. (UMA).
Galaxy Digital And Bloomberg Collaborates To Create DeFi Index
Bloomberg and Galaxy Digital Management have expanded their crypto offerings to track the success of the decentralized financial industry.
"Decentralized finance is emerging as the next significant investing topic in cryptocurrency," said Alan Campbell, head of product management for Bloomberg's multi-asset index division.
"As the need for liquidity and institutional custody grows, DeFi has become an increasingly appealing choice for institutional investors."
According to Bloomberg, the DeFi assets were chosen “based on institutional trading and custody readiness” in the United States, as well as the “quality of pricing.”
As per the news site, no single project will ever account for less than 1% of the index's total value, and no more than 40%.
Galaxy Digital's fund management subsidiary, Galaxy Fund Management, will also offer its own passively managed fund, DeFi, that will follow the performance of Bloomberg's.
The news comes three years after Bloomberg and Galaxy Digital initially collaborated to develop a joint crypto benchmark index.
When it first launched in May 2018, the index monitored 10 cryptocurrencies from the market's "biggest, most liquid part," which included Bitcoin (BTC) and Ether (ETH).
Bloomberg and Galaxy Digital's new DeFi index follows the launch of fund manager Bitwise's February launch of a DeFi Crypto Index Fund.
Though Bitwise recorded 46.4% gains in the last month, the fund's net asset value has decreased by 8.6% since its start.
About Bloomberg
Bloomberg Terminal is the world's first data management platform that is hosted in the cloud. The Bloomberg Terminal is built on the company's expertise of swiftly and correctly providing data, news, and analytics through innovative technology.
Customers all across the world rely on Bloomberg for an impartial, transparent approach to indexing.
About Galaxy Digital
Galaxy Digital (TSX: GLXY) is a financial services and investment management firm specializing in the digital asset and blockchain technology industries.
Trading, Asset Management, Principal Investments, Investment Banking, and Mining are the five synergistic business segments that Galaxy Digital works in.
Mike Novogratz is the CEO and Founder of the company.