The Bloomberg Galaxy Crypto Index (BGCI) will be tracking the performance of some of the biggest and most liquid cryptocurrencies in the market.

On Wednesday, May 9, Bloomberg announced its partnership with Galaxy digital Capital Management, a digital asset management firm founded by Bitcoin bull and billionaire Mike Novogratz. The duo has made public the launch of cryptocurrency index fund called Bloomberg Galaxy Crypto Index (BGCI), which will be tracking the performance of some of the biggest and most liquid cryptocurrencies in the market.

The index will be owned and managed by Bloomberg Index Services Limited in collaboration with Galaxy Digital Capital Management. Being a new member of the Bloomberg Index family, BGCI will provide the first institutional grade benchmark for the digital currency market. The Index will supposedly give a boost to the nascent crypto market giving more accessibility to the mainstream financial institutions.

The BGCI will be weighted on the market capitalization and will track the performance of some USD-traded digital currencies like bitcoin (30%), ethereum (30%), XRP (14.14%), bitcoin cash (10.65%), EOS (6.11%), litecoin (3.77%), dash (1.67%), monero (1.66%), ethereum classic (1%), and zcash (1%). The index will comprise of different crypto constituents across multiple categories including the medium of exchange, store of value, privacy assets and the smart contract protocols.

The two companies said in a statement that in order to determine the performance metrics of digital currency, they will be using a “rules-based methodology and data”  based on sources that both companies have derived. However, the two companies refrained to give further details of this.

Alan Campbell, Global Product Manager for Bloomberg Indices said:

“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.”

Michael Novogratz, CEO and Founder of Galaxy Digital Capital Management, said,

“The Bloomberg Galaxy Crypto Index brings unprecedented transparency to the crypto markets. We are excited to help drive the decentralized revolution forward through the creation of BGCI.”

“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,” said in a Twitter message Novogratz.

Steve Kurz, Head of Asset Management at Galaxy Digital Capital Management also expressed positivity over the new partnership:

“We are thrilled to partner with Bloomberg on the BGCI.  The index’s independent, rules-based methodology provides a strong foundation on which the cryptocurrency ecosystem will continue to grow and mature.”

Mike Novogratz, an ex Goldman Sachs executive and quite a popular figure in the global financial space will be launching a Galaxy digital “merchant-bank” on Canada’s TSX Venture Exchange. The bank will be involved in providing crypto services for trading, principal investing, asset management and advisory work.

Just the BGCI, world’s biggest cryptocurrency exchange Coinbase also announced the launch of its own Crypto Index Fund earlier this year, in March 2018. Several big institutional players have also been seen launching their crypto services and trading platforms much recently.

Financial juggernauts like Goldman Sachs and NYSE-parent Intercontinental Exchange are also working towards launching their own Bitcoin trading platforms.

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