Bloomberg and Galaxy Digital team up to offer a new DeFi Index | Invezz

The importance of diversified crypto portfolios is larger than ever, but it remains just as complicated as always to maintain, especially for new crypto investors, who are not yet used to working with different blockchains and managing multiple assets. This is why crypto indexes are slowly but surely becoming a major trend, particularly when it comes to DeFI tokens.

In fact, a new DeFi Index has just been announced as a product of a partnership between Bloomberg and Mike Novogratz’s Galaxy Digital. The former Bitcoin bull, now a major DeFi proponent, decided to join forces with the financial news giant according to Galaxy Digital’s announcement published yesterday, August 19th.

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According to the announcement, Galaxy Digital’s fund platform, Galaxy Fund Management, is now offering a so-called Galaxy DeFi Index Fund. The fund is passively managed, and it is tracking the performance of the DeFi sector.

Of course, not the entire sector is included into the fund. Instead, it keeps track of nine different tokens, at least for the time being. The supported tokens include UNI (40%). AAVE (18%), MKR (12.7%), COMP (10%), YFI (5.4%) SNX (5%), SUSHI (4.3%), ZXR (2.8%), and UMA (1.8%).

Interestingly, many have expected the fund to also contain a number of other major projects’ tokens, such as Chainlink’s LINK, Curve DAO’s CRV, or THORChain’s RUNE. But, for now, at least, these tokens are not included in the fund.

Not the first crypto index by Bloomberg and Galaxy Digital

While the team-up and the launch of a new index is big news, especially for DeFi, it is worth noting that this is not the first index that the pair launched together. Back in 2018, they also launched the Bloomberg Crypto Index, which was designed to keep track of the most liquid assets.in crypto markets.

Still, the fact that the two firms went for a DeFi index this time shows their high expectations of the sector. In fact, Bloomberg’s Multi-Asset Index’s head of Product Management, Alan Campbell, commented on this very aspect. He said that DeFi is growing as the next major investment theme in the crypto industry, and its liquidity and institutional custody are constantly increasing.

As such, DeFi has become a very compelling option for institutional investors, which is why the partnering companies aim to expand their crypto index offering.

As for Mike Novogratz, he also shared his thoughts on a situation with a simple tweet “DeFi is the future.”