According to Bloomberg, the nine DeFi assets selected for the index at
launch were based on "institutional trading and custody readiness" in
the United States.
Financial news site Bloomberg and Galaxy Digital Management have
expanded their crypto offering to track the performance of the
decentralized finance space.
In a Thursday announcement, Bloomberg said
it would launch an index currently tracking nine different
decentralized finance, or DeFi, projects with Galaxy Digital. As of Aug.
1, these projects included Uniswap (UNI), Aave (AAVE), Maker (MKR),
Compound (COMP), Yearn.Finance (YFI), Synthetic (SNX), SushiSwap
(SUSHI), 0x (ZXR), and Uma (UMA).
"Decentralized finance is
growing as the next major investment theme within crypto," said Alan
Campbell, Bloomberg's multi-asset index business’ head of product
management. "As liquidity and institutional custody solutions continue
to grow, DeFi has become an increasingly compelling option for
institutional investors.”
According to Bloomberg, the DeFi assets
were selected “based on institutional trading and custody readiness” in
the United States, in addition to the “quality of pricing.” The news
outlet said no single project would ever represent less than 1% of the
index’s overall value, but no more than 40%. The funds arm of Galaxy
Digital, Galaxy Fund Management, will also offer its own passively
managed fund tracking the performance of Bloomberg’s, listed under the
ticker DEFI.
Related: Coop to include BadgerDAO in DPI DeFi index from August
The announcement comes three years after Bloomberg and Galaxy Digital first partnered
to create a joint crypto benchmark index. At its launch in May 2018,
the index tracked ten cryptocurrencies from the “largest, most liquid
portion” of the market, which included Bitcoin (BTC) and Ether (ETH).
Bloomberg and Galaxy Digital’s new DeFi index follows the creation of a DeFi Crypto Index Fund operated by fund manager Bitwise
in February. Though Bitwise reported returns of 46.4% over the last
month, the fund has a net asset value of 8.6% less since its inception.
source link : https://cointelegraph.com/news/galaxy-digital-partners-with-bloomberg-for-defi-index
