Bloomberg and Galaxy Digital Launch DeFi Index, Expand Crypto Offering

Bloomberg and Galaxy Digital Launch DeFi Index, Expand Crypto Offering

On Thursday, Bloomberg, along with Galaxy Digital, announced the expansion of its crypto offering.

Bloomberg is a global business, financial information, and news leader. It connects influential decision-makers to a dynamic network of information, people, and ideas. Specifically leveraging technology, Bloomberg allows customers to access, integrate, distribute, and manage data and information across organizations more efficiently and effectively.

Galaxy Digital is a diversified financial services and investment management innovator in the digital asset, cryptocurrency, and also blockchain technology sector. Its funds platform, Galaxy Fund Management, is the cryptocurrency funds business that provides simple and secure access to this digital asset via institutional-grade investment vehicles.

Bloomberg-Galaxy Decentralized Finance Index

Bloomberg has announced that it has partnered, once again, with Galaxy Digital. However, this time, to launch the Bloomberg Galaxy DeFi Index (ticker: DEFI). The announcement, made in a press release, also stated: “Alongside the index launch, Galaxy Digital’s funds platform, Galaxy Fund Management, is now offering the Galaxy DeFi Index Fund, a passively managed fund tracking the performance of DEFI”.

The benchmark is designed to measure the performance of the largest DeFi protocols by market value that offer financial services without a central financial intermediary, such as brokerages, exchanges, or banks. The benchmark is owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy.

“Decentralized finance is growing as the next major investment theme within crypto,” stated Head of Product Management for Bloomberg’s Multi-Asset Index business, Alan Campbell. “As liquidity and institutional custody solutions continue to grow, DeFi has become an increasingly compelling option for institutional investors, and we’ll continue working with Galaxy to expand our crypto index offering.”

Likewise, Steve Kurz, Partner and Head of Asset Management at Galaxy Digital, said: “Galaxy continues to pioneer inroads for institutions seeking exposure to the innovation happening within the crypto ecosystem. The blockchain-based infrastructure behind DeFi is maturing at an accelerated rate and clear examples of how this new technology can disrupt financial services are emerging in real-time. This partnership with Bloomberg and our DeFi Index Fund provides investors with data and tools that deliver calculated exposure to the future of financial services.”

The new index, revealed Thursday, will track nine DeFi tokens. They are Uniswap (UNI), Aave (AAVE), Maker (MKR), Compound (COMP), Yearn.Finance (YFI), Synthetix (SNX), SushiSwap (SUSHI), 0x (ZXR), and UMA (UMA).

The Bloomberg-Galaxy Crypto Indices

The launch of the DeFi index adds to the growing list of the Bloomberg-Galaxy family of Indices. In 2018, Bloomberg and Galaxy launched the Bloomberg-Galaxy Crypto Indices with the Bloomberg-Galaxy Crypto Index (BGCI). The BGCI is a market capitalization-weighted index that measures the performance of the largest digital assets traded in USD. Subsequently, the Bitcoin (BTC) and Ethereum (ETH) Indices followed. These indices are designed to measure the performance of a single bitcoin or Ether traded in USD.