Bloomberg and Galaxy Digital launch expands crypto capabilities for institutions

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DeFi

Bloomberg, along with Galaxy Digital, has expanded its crypto offering with the launch of the Bloomberg Galaxy DeFi Index (DEFI). Alongside the index launch, Galaxy Digital’s funds platform, Galaxy Fund Management, is now offering the Galaxy DeFi Index Fund, a passively managed fund tracking the performance of DEFI.

The benchmark is designed to measure the performance of the largest decentralised finance (DeFi) protocols by market value that offer financial services without a central financial intermediary, such as brokerages, exchanges, or banks. DeFi is an emergent sector of digital assets that replicate financial functions such as borrowing, lending, and exchanging assets. The benchmark is owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy.

"Decentralised finance is growing as the next major investment theme within crypto,” says 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,” says 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.”

The constituents represented in DEFI are selected based on institutional trading and custody readiness in the US, as well as quality of pricing. Each constituent will represent a hold of no more than 40 per cent of the Index and no less than 1 per cent of the benchmark’s overall value. DeFi protocols will be considered for addition or removal to or from the Index on a monthly basis.