Novogratz’ Galaxy Partners With Bloomberg To Launch Crypto Index

Updated On May 10, 2018 by Cameron Bishop

Cryptocurrency investor and billionaire Mike Novogratz has partnered with Bloomberg LP to launch the first crypto index, similar to the Dow Jones and Nasdaq indices. The index will be based on the value of ten leading cryptocurrencies, weighted by market capitalization. The Bloomberg Galaxy Crypto Index (BGCI) index “is structured to track the performance of the largest, most liquid portion of the cryptocurrency market” according to the announcement made by Bloomberg.

While Bitcoin and Ethereum has been allotted a weightage of 30%, smaller cryptocurrencies like Monero, Zcash, Ethereum Classic, and Dash were given a weightage in the rang of 1% to 2%.

Notably, Coinbase has recently launched its own index, which determines the market value of assets traded on GDAX exchange. However, this is the first time a traditional financial tracker has constructed an index based on cryptocurrencies.

Alan Campbell, Global Product Manager for Bloomberg Indices, stated

“Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies. The index brings our rigorous approach to index construction to cryptos and will provide investors with a transparent benchmark to gauge the performance of the broader market.”

Novogratz, the founder of Galaxy Digital Capital Management, has made an extraordinary comeback after he started investing in cryptocurrencies in 2013. Since then, the hedge fund manager and ex-Goldman Sachs partner has successfully created a team comprising of Goldman Sachs veterans.

Speaking to CNN Money, Novogratz stated

“I call it the people’s revolution. I think it’s almost essential for every investor to have at least 1-2 percent of their portfolio….It’s almost irresponsible not to have something on the table. If you don’t have a chip on the table you’re not paying attention.”

Novogratz also anticipates big investors to enter the crypto arena soon. He said

”I think you’re seeing the herd of major institutions slowly moving. We’re in the New York Stock Exchange, I’d be shocked if within the next six months, they’re not participating in some form.”

Notably, Novogratz’ prediction has come a day after the Intercontinental Exchange, parent company of the NYSE, has revealed its intention to set up the creation of a cryptocurrency exchange. Even Goldman Sachs and JP Morgan have started moving forward with their plans related to blockchain technology and Bitcoin futures.

The introduction of cryptocurrency index is yet another step towards making the system more transparent and luring large investors into the blockchain space.

Cameron works tirelessly behind the scenes ensuring his many US news stories are factual, informative and brought to you in a timely fashion before most other media outlets have them. He is an investigative journalist at heart who also has a fond interest in the money and business markets too.

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