How Bloomberg’s Launching of BGCI Drives Decentralization and Transparency
Bloomberg Galaxy Crypto Index is a market-cap weighted index which can track the performance of cryptocurrencies in the market. Cryptocurrencies with a higher marketcap have a higher weight in the index. Launched by Bloomberg, which is the global leader among market data providers and index services, the BGCI is the first major crypto index. It will consist of up to a maximum of 12 cryptocurrencies including Bitcoin, Etherium, Monero, Ripple and ZCash. It tracks the performance of only the largest, most liquid portion of the crypto market that are traded in US dollars. Its constituents encompass some of the facets of cryptocurrencies including mediums of storage of monetary value and mediums of value exchange like Bitcoin, smart contract protocols like Etherium, and privacy-focused digital assets like Monero.
Starting with a base-value of 1,000 at the time of launch on the 3rd of May 2018, the BGCI only had 10 constituents. Bitcoin and Etherium both at 30% weight, Ripple at 14.14%, Bitcoin Cash at 10.65%, EOS at 6.11%, Litecoin at 3.77%, Dash at 1.67%, Monero at 1.66%, Ethereum Classic at 1.00% and Zcash at 1.00% weight.
Each constituent weight will be between the range of maximum 30% and minimum 1% as the index is rebalanced and reconstituted on a monthly basis. In case of a hardfork leading to a new cryptocurrency, the same rule applies for each new qualifying entry on both the parent and child in the fork-out.
BGCI covers the performance of only the top virtual currencies of the world. It is also set to join other indexes administered by the Bloomberg Index Services Limited, with Galaxy Digital Capital Management to help in co-branding. This launching is considered “the first institutional grade benchmark for the cryptocurrency market.” The launching of BGCI by Bloomberg is only part of the growing interest in cryptocurrency, answers the demand for a transparent crypto market and helps push decentralization forward. Visit Orozu to explore the benefits of decentralization by a promising altcoin projected to be one of the largest virtual coins in the 21st century. 
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