Crypto Asset

Galaxy Digital Unveils DeFi Fund Linked to New Bloomberg DEFI Index

Leading financial news provider Bloomberg is joining forces with digital asset management firm Mike Novogratz’s Galaxy Digital Capital to launch a new cryptocurrency benchmark, the Bloomberg Galaxy DeFi Index (DEFI).

Described by the companies as an institutional grade benchmark for the largest decentralized finance (DeFi) protocols by market capitalization, the creation and launch of DEFI index further validates the crypto capital markets.

The DEFI index is a broad-based, benchmark representation of the rapidly expanding universe of DeFi space. Upon initial launch, the benchmark reflects performance of top 9 DeFi protocols and its associated tokens. Namely, the index’s components – priced in US dollar – include Uniswap (UNI), Aave (AAVE), Maker (MKR), Compound (COMP), Yearn.Finance (YFI), Synthetic (SNX), SushiSwap (SUSHI), 0x (ZXR) and Uma (UMA).

The listed protocols offer alternatives to traditionally centralized financial services, such as brokerages, exchanges, or banks. Their capabilities cover core activities such as market-making, lending, borrowing, and liquidity and yield aggregation.

“Decentralized finance is growing as the next major investment theme within crypto,” said Alan Campbell, Head of Product Management for Bloomberg’s Multi-Asset Index business. “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.”

“Galaxy continues to pioneer inroads for institutions seeking exposure to the innovation happening within the crypto ecosystem,” said Steve Kurz, Partner and Head of Asset Management at Galaxy Digital. “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. This partnership with Bloomberg and our DeFi Index Fund provides investors with data and tools that deliver calculated exposure to the future of financial services.”

Alongside the index launch, Galaxy Digital has also rolled out a passively managed fund tracking the performance of the newly-launched DEFI. Called ‘the Galaxy DeFi Index Fund,’ the fund provides institutional investors with exposure to a selection of industry-leading DeFi protocols through a market-capitalisation weighted portfolio.

The Fund is now open for daily subscription by eligible individual and institutional accredited investors.