Bloomberg launches cryptocurrency market capitalization index

Bloomberg, the global news leader in the financial sector, announced the launch of a cryptocurrency market capitalization index in association with the newly established digital asset management, cryptographic portfolios and blockchain technology, Galaxy Digital Capital Management LP, founded by the well-known Wall Street trader, Mike Novogratz.

The launch was reported by the same media this May 9, where it was found that the index is designed to track the performance and information of 10 cryptocurrencies that are among the most transcribed in the cryptoactive market, which are they will represent according to their values in American dollars and will be weighted by their market capitalization.

The initiative will be called the Bloomberg Galaxy Cryptocurrency Index, under the abbreviation BGCI, which is directly owned by Bloomberg -firma that will administer the platform under a methodology based on rules and data from sources tested by specialists of both companies-, as well as a brand shared with the Novogratz signature.

Among the cryptocurrencies to be listed in this index are bitcoin, ether, monero, litecoin, zcash, ripple, dash and even bitcoin cash, assets that will be diversified into different categories depending on their function as a digital asset. In this way, the index will provide information on data, prices, analysis, distribution, search, means of exchange, intelligent contract protocols and cryptocurrencies focused on privacy.

Both companies highlighted that the main objective of the BGCI index is to provide a service to investors that facilitates the exposure of the digital asset market in a more diversified manner, thus providing a more transparent and institutional comparative evaluation.

For which they have specialized tools such as calculation through the Cryptocurrency Pricing Index, and rules based on an index methodology that provides details of the procedures to calculate the values. For example, the eligibility of cryptocurrencies based on their market capitalization, the calculation of the balance and the monthly reconstitution of the weighted price. In addition, the composition of the index will be reviewed and evaluated by the Bloomberg Index Manager team, which works under the supervision of the Bloomberg Reference Price Monitoring Committee.

Alan Campbell, Global Product Manager at Bloomberg, said that the launch of this platform demonstrates the growing interest of investors in the cryptocurrency market, as well as the development and impact of this ecosystem on more traditional finance.

Since the launch of the cryptocurrency desk of Goldman Sachs, the wave of private investors that are betting on cryptocurrency negotiations, the possible launch of financial derivatives of cryptocurrencies by the New York Stock Exchange point out the interest that the cryptocurrency has aroused in traditional financial institutions. . By the way, Alan Campbell says:

Today's launch of the Bloomberg Galaxy Crypto Index reflects the growing interest of our customers in cryptocurrencies. The index takes our rigorous approach to building cryptocurrency indices and will provide investors with a transparent benchmark to measure the performance of a broader market.

On the other hand, Novogratz sees a great growth opportunity for the digital asset market in this initiative, considering that it could help boost the blockchain industry and provide greater transparency. In line with these statements, Steve Kurz, director of Galaxy Digital, added that the project has generated a solid base for the constitution of an increasingly institutionalized cryptocurrency market.

We are pleased to partner with Bloomberg at BGCI. The independent methodology based on index rules provides a solid foundation upon which the cryptocurrency ecosystem will continue to grow and mature.

BGCI becomes the first reference for cryptocurrencies managed directly by Bloomberg, which is integrated into a set of indexes and financial services offered by the company to the international financial community.