Novogratz, Bloomberg Team Up on the ‘Bloomberg Galaxy Crypto Index’
It might as well be “Adoption Week” in the cryptoverse, as the major deals keep flowing. After NYSE’s parent company and Facebook have made crypto and blockchain-minded moves, Mike Novogratz and Bloomberg are following suit with the Bloomberg Galaxy Crypto Index — a new market tracker for the top cryptos.
Tracking the Top Coins’ Growth
With a new partnership flex, former Wall Street macro trader Mike Novogratz is showing his crypto-asset management play Galaxy Digital Capital Management LP is nothing to sneeze at.
That’s because Galaxy Digital and data, media, and software powerhouse Bloomberg are now partnering up on the so-called Bloomberg Galaxy Crypto Index (BGCI) — an index that will track 10 top cryptocurrencies.
Per the announcement release, the index, which will be operated by Bloomberg, will track dominant “USD-traded” digital assets:
“The BGCI is market capitalization-weighted and measures the performance of ten USD-traded cryptocurrencies, including Bitcoin, Ethereum, Monero, Ripple, and Zcash. The index constituents are diversified across different categories of digital assets, including stores of value, mediums of exchange, smart contract protocols, and privacy assets.”
Maturing the Cryptoeconomy
On Twitter, Mike Novogratz highlighted how such an index is a tangible step toward institutional investors embracing cryptocurrencies as a “new asset class” in the mainstream:
So excited to announce our partnership with Bloomberg. The herd is on the move. This is an important piece of the architecture that institutional accounts need to treat crypto as a new asset class. https://t.co/TRSY97XjCl
— Michael Novogratz (@novogratz) May 9, 2018
By their very nature, indexes are are metrics with a mind to the long-term. Per Investopedia, “Index values help investors track changes in market values over long periods of time.”
To that end, Novogratz and Bloomberg are putting their stakes into the ground, effectively broadcasting that, in their views, cryptocurrency is most certainly here to stay.
Indeed, speaking of the BGCI, Bloomberg Indices’ Global Product Manager Alan Campbell noted that the fostered transparency will mature investors’ ability to judge the cryptoeconomy:
“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.”
What’s your take? Do you think this index is yet another step toward maturation for the young cryptoeconomy? Let us know your thoughts in the comments below.
Images via PRNewswire, Bloomberg