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Galaxy Digital partners with Bloomberg to launch the DeFi index

The financial news site Bloomberg and Galaxy Digital Management have expanded their cryptocurrency offering to track the performance of the decentralized financial space through the DeFi index.

According to an announcement Thursday, Bloomberg said that would launch an index that currently tracks nine different decentralized finance projects, or (DeFi), alongside Galaxy Digital. Since August 1, these projects include Uniswap (UNI), Aave (AAVE), Maker (MKR), Compound (COMP), Yearn.Finance (YFI), Synthetic (SNX), SushiSwap (SUSHI), 0x (ZXR), and Uma (UMA).

“Decentralized finance is growing as the next big investment topic within cryptocurrencies”said Alan Campbell, head of multi-asset index business product management at Bloomberg.

“As institutional custody and liquidity solutions continue to grow, DeFi has become an increasingly attractive option for institutional investors.”

According to Bloomberg, DeFi’s assets were selected “based on institutional trading and custody availability” in the United States, in addition to “price quality.” The news outlet said that no single project would represent less than 1% of the total value of the index, but not more than 40%. The fund arm of Galaxy Digital and Galaxy Fund Management will also offer its own passive management fund that will track the performance of Bloomberg’s, listed under the ticker symbol DEFI.

The announcement occurs three years after Bloomberg and Galaxy Digital first partnered to create a benchmark index of a set of cryptocurrencies. At its launch in May 2018, the index tracked ten cryptocurrencies from the “largest and most liquid portion” of the market, which included Bitcoin (BTC) and Ether (ETH).

The new Bloomberg and Galaxy Digital DeFi Index comes after the creation of the DeFi Crypto Index Fund, operated by fund manager Bitwise in February. Even if Bitwise reported a return of 46.4% over the last month, the fund has an asset value of 8.6% less since its inception.

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Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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