The digital assets management company Galaxy Digital Capital Management LP, founded by billionaire investor Michael Novogratz, together with Bloomberg launched the Bloomberg Galaxy Crypto Index (BGCI).
The index will track 10 of the most liquid cryptocurrencies, having the best indicators on the level of market capitalization. It is based on several basic criteria for cryptocurrency assets, such as average exchange rates, the possibilities of smart contracts and the level of confidentiality.
The creation of the index marks an important step in the evolution of the space of cryptocurrency assets, facilitating a diversified exposition, as well as an independent analytical platform for investors. BGCI uses a rule-based methodology and data from sources that have passed due diligence processes of Bloomberg and Galaxy Digital Capital Management.
"Today's launch of the Bloomberg Galaxy Crypto index reflects the growing interest of our customers in cryptocurrency assets", said Alan Campbell, global product manager for Bloomberg indexes.
"This index will provide investors with a transparent benchmark for assessing the effectiveness of the market."
Michael Novograts, CEO and founder of Galaxy Digital Capital Management, said: "The Bloomberg Galaxy Crypto Index provides unprecedented transparency for cryptographic markets. We are happy to help move the decentralized revolution forward through the creation of the BGCI."
Steve Kurz, Head of Asset Management at Galaxy Digital Capital Management, added: "We are very pleased to work with Bloomberg on this project. An independent, rule-based index methodology provides a solid foundation on which the crypto-currency ecosystem will continue to grow and develop. "
At the time of creation, the index includes the following cryptocurrencies: Bitcoin - 30.00%, Ethereum - 30.00%, Ripple - 14.14%, Bitcoin Cash - 10.65%, EOS - 6.11%, Litecoin - 3.77%, Dash - 1.67%, Monero - 1.66% Ethereum Classic - 1.00%, Zcash - 1.00%
According to Novogradets, for today every investor should have at least 1-2% in its investment portfolio in the cryptocurrency, as ignoring investments in cryptocurrency assets is a bad idea.
The billionaire believes that the technological growth that will take place thanks to cryptocurrency technology in the next 2-4 years is more important than the income itself. The launch of the Bloomberg Galaxy Crypto Index he regards as a new stage in the adoption by institutional investors of a new asset class.