2021-8-20 08:54 |
Bloomberg has teamed up with financial services firm Galaxy Digital to expand its crypto products with the launch of the Bloomberg Galaxy DeFi Index.
Mike Novogratz’s Galaxy Digital joined forces with financial news giant Bloomberg to launch a new crypto index tied to decentralized finance.
According to the August 19 announcement, Galaxy Digital’s fund platform, Galaxy Fund Management, is now offering the Galaxy DeFi Index Fund, a passively managed fund tracking the performance of the sector.
The new index will track nine DeFi tokens, to begin with, serving as the basis for Galaxy’s new passively-managed fund. Those tokens are Uniswap’s UNI (40%), AAVE (18%), Maker MKR (12.7%), Compound’s COMP (10)%, Yearn Finance YFI (5.4)%, Synthetix SNX (5)%, SushiSwap SUSHI (4.3)%, 0x Protocol’s ZXR (2.8)%, and UMA (1.8%).
Notably absent from the list were Chainlink (LINK), which many do not consider a DeFi token anyway, Curve DAO (CRV), and THORChain (RUNE).
Delving into DeFiThis is not the first crypto index launched by the pair, in 2018 the Bloomberg Crypto Index was launched to track the most liquid tokens in crypto markets. The new DeFi benchmark is owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy, the announcement added.
Alan Campbell, head of Product Management for Bloomberg’s Multi-Asset Index business, stated:
“Decentralized finance is growing as the next major investment theme within crypto. 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.”
Former hedge fund manager Mike Novogratz simply tweeted “DeFi is the future.”
According to the announcement, the tokens included in the DeFi index were “selected based on institutional trading and custody readiness in the United States as well as the quality of pricing.”
Galaxy’s head of asset management Steve Kurz added “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.”
On Aug 17, Galaxy Digital attempted another Bitcoin ETF proposal to the SEC for a futures-only product.
DeFi TVL updateThe total value locked across the entire sector is currently $118 billion according to DappRadar. DeFiPulse is reporting a much lower figure of $83 billion while DeFiLlama, which lists many more protocols, is reporting a TVL of $151 billion.
Uniswap is the leading protocol on DappRadar with $14.2 billion while the other two analytics platforms are reporting Aave at the top. DeFi related tokens are having a solid day in terms of gains with many such as CRV, BADGER, RUNE, SUSHI, and REN increasing by double digits today.
The post New DeFi Index Launched by Galaxy Digital and Bloomberg appeared first on BeInCrypto.
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