Bloomberg launches index to track ten cryptocurrencies; includes bitcoin, ethereum

The index's creation will facilitate diversified exposure to the crytocurrencies as well as provide an independent and "institutional grade" benchmark for investors.
The index's creation will facilitate diversified exposure to the crytocurrencies as well as provide an independent and "institutional grade" benchmark for investors.PHOTO: REUTERS

SINGAPORE - Financial news firm Bloomberg, together with digital asset manager Galaxy Digital Capital Management, has launched the Bloomberg Galaxy Crypto Index (BGCI) to track the performance of ten US dollar-traded cryptocurrencies.

The BGCI is market capitalisation-weighted and measures the performance of the following ten cryptocurrencies: bitcoin, ethereum, ripple, bitcoin cash, EOS, litecoin, dash, monero, ethereum classic and zcash.

The index's creation will facilitate diversified exposure to the crytocurrencies - or "cryptos" - as well as provide an independent and "institutional grade" benchmark for investors, the companies announced in a joint media statement.

The BGCI uses a rules-based methodology and data from sources that have passed both Bloomberg and Galaxy Digital Capital Management's due diligence processes, the duo added.

The index will be owned and administered by Bloomberg Index Services, and co-branded with Galaxy Digital Capital Management.

"Today's launch of the Bloomberg Galaxy Crypto Index reflects our clients' growing interest in cryptocurrencies," said global product manager for Bloomberg Indices Alan Campbell.

"The index brings our rigorous approach to index construction to cryptos and will provide investors with a transparent benchmark to gauge the performance of the broader market," Mr Campbell highlighted.

Head of asset management at Galaxy Digital Capital Management Steve Kurz added the index's "independent, rules-based methodology provides a strong foundation on which the cryptocurrency ecosystem will continue to grow and mature".