NEW YORK, Aug. 19, 2021 /PRNewswire/ -- Bloomberg, along with Galaxy Digital, today announced the expansion of its crypto offering with the launch of the Bloomberg Galaxy DeFi Index (ticker: DEFI). 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 decentralized finance (DeFi) protocols by market value that offer financial services without a central financial intermediary, such as brokerages, exchanges, or banks. DeFi is an emergent sector of digital assets that replicate financial functions such as borrowing, lending, and exchanging assets. 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," said Alan Campbell, Head of Product Management for Bloomberg's Multi-Asset Index business. "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."
"Galaxy continues to pioneer inroads for institutions seeking exposure to the innovation happening within the crypto ecosystem," said Steve Kurz, Partner and Head of Asset Management at Galaxy Digital. "The blockchain-based infrastructure behind DeFi is maturing at an accelerating 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 constituents represented in DEFI are selected based on institutional trading and custody readiness in the US, as well as quality of pricing. Each constituent will represent a hold of no more than 40% of the Index and no less than 1% of the benchmark's overall value. DeFi protocols will be considered for addition or removal to or from the Index on a monthly basis.
As of August 1, 2021, the Index consisted of the following assets and weightings:
- UNI Uniswap 40.0%
- AAVE AAVE 18.0%
- MKR Maker 12.7%
- COMP Compound 10.0%
- YFI Yearn.Finance 5.4%
- SNX Synthetix 5.0%
- SUSHI SushiSwap 4.3%
- ZXR 0x 2.8%
- UMA UMA 1.8%
Bloomberg provides an independent, transparent approach to indexing for customers across the globe, including customized crypto index solutions for asset managers. For more information, visit Bloomberg Indices.
Bloomberg clients can access the index using the ticker DEFI Index <Go>.
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Bloomberg provides an independent, transparent approach to indexing for customers across the globe. For more information, please visit this link.
About Galaxy Digital
Galaxy Digital (TSX: GLXY) is a diversified financial services and investment management company dedicated to the digital asset and blockchain technology sectors. Galaxy Digital's team has extensive experience spanning investing, portfolio management, capital markets, venture capital, asset management, and blockchain technology. Galaxy Digital operates in five synergistic business lines: Trading, Asset Management, Principal Investments, Investment Banking, and Mining. Galaxy Fund Management is the digital asset funds brand of the Asset Management business. Galaxy Digital's CEO and Founder is Mike Novogratz. The Company is headquartered in New York City, with offices in Chicago, San Francisco, London, Amsterdam, Tokyo, Hong Kong, the Cayman Islands (registered office), and New Jersey.