Bloomberg has announced the launch of the BGCI, an index designed to track the performance of the largest, most liquid portion of the cryptocurrency market.
This market capitalization-weighted index was designed together with leading digital asset management firm Galaxy Digital Capital Management LP. The BGCI measures the performance of ten USD-traded cryptocurrencies, including Bitcoin, Ethereum, Monero, Ripple, and Zcash.
Its constituents are diversified across different categories of digital assets, including stores of value, mediums of exchange, smart contract protocols, and privacy assets. The current cryptocurrency weightings have Bitcoin and Ethereum representing over half of the index, with 30% each, followed by Ripple with 14.14%, and Bitcoin Cash (10.65%). Other cryptocurrencies include EOS (6.11%), Litecoin (3.77%), Dash (1.67%), Monero (1.66%), Ethereum Classic (1%), and Zcash (1%).
This important step in the evolution of the digital assets space facilitates diversified exposure as well as independent benchmarking for investors. Owned and administered by Bloomberg Index Services Limited, the BGCI offers the first institutional grade benchmark for the cryptocurrency market.
Alan Campbell, Global Product Manager for Bloomberg Indices, commented:
“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, added:
“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.”
Steve Kurz, Head of Asset Management at Galaxy Digital Capital Management, said:
“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.”
Chicago-based proprietary trading firm Hehmeyer Trading + Investments announced in March the launch of its cryptocurrency index fund. The service provides access to the cryptocurrency market by investing in a fund that aims to track the performance of the proprietary Hehmeyer Cryptocurrency Index (HCI).
Last month, former Bloomberg executive Jamie Bogen was appointed Director of Execution Services at Dash Financial, not to be confused with the cryptocurrency that holds the same name and represents 1.67% of the BGCI index.