Digital asset management company Galaxy Digital has partnered with Bloomberg to launch an index fund for a basket of tokens – the Bloomberg Galaxy DeFi Index under the ticker “DEFI”.
According to
informationprovided by Bloomberg, the index fund is designed to track the market value of the largest DeFi protocols offering financial services without the involvement of intermediaries such as brokerage companies or banks. DEFI tokens are selected based on institutional trading volumes, US holding capacity, and pricing.
Each token will account for at least 1% and no more than 40% of the total value of the index. The index fund “bundle” will change every month – new DeFi tokens will be added or ineligible tokens removed. According to calculated data as of August 1, 2021, nine tokens were included in the Bloomberg Galaxy DeFi Index: UNI (40%), AAVE (18%), MKR (12.7%), COMP (10%), YFI (5.4%), SNX (5.0%), SUSHI (4.3%), ZXR (2.8%) and UMA (1.8%).
Alan Campbell, International Product Development Manager for Bloomberg Indices, commented on the launch of the new index fund. He called decentralized finance an important piece of the cryptocurrency industry. With the growing popularity of liquidity solutions and custody services for institutional investors, DeFi is becoming an increasingly attractive industry for large organizations. Therefore, Bloomberg will continue to work with Galaxy to expand its offerings related to cryptocurrency indices, Campbell said.
“The DeFi infrastructure is evolving at an accelerated pace and there are already real examples of how this latest technology is revolutionizing the financial services industry. Through our partnership with Bloomberg, we will provide investors with the data and tools they can use to enter the DeFi market, ”added Steve Kurz, Head of Asset Management at Galaxy Digital.
In March, Galaxy Digital, in partnership with investment firm CI Global Asset Management (CI GAM), launched a bitcoin fund called the CI Galaxy Bitcoin Fund, receiving approval from the Ontario Securities Commission. Galaxy Digital filed an application with the US Securities and Exchange Commission (SEC) this week to launch an Exchange Traded Fund (ETF) on bitcoin futures contracts.
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