Well-known hedge fund supervisor Michael Novogratz has launched a cryptocurrency benchmark index in partnership with Bloomberg. The index, designed to trace the efficiency of the most important, most liquid cash, consists of 10 cryptocurrencies at its inception.
New Crypto Index
Galaxy Digital Capital Management and Bloomberg introduced on Wednesday the launch of a cryptocurrency benchmark index referred to as Bloomberg Galaxy Crypto Index (BGCI). Galaxy Digital Capital Management LP is an asset administration agency devoted to the digital currency and blockchain sectors based by Michael Novogratz, a former Principal and Chief Investment Officer of the Fortress Macro Funds and a former Partner at Goldman Sachs.
Citing that “the BGCI offers the first institutional grade benchmark for the cryptocurrency market,” the announcement particulars:
The index is designed to trace the efficiency of the most important, most liquid portion of the cryptocurrency market. The BGCI is market capitalization-weighted and measures the efficiency of ten USD-traded cryptocurrencies, together with bitcoin, ethereum, monero, ripple, and zcash.
“The index constituents are diversified across different categories of digital assets, including stores of value, mediums of exchange, smart contract protocols, and privacy assets,” the businesses defined. “The index is owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy Digital Capital Management.”
About the Index
At its inception, the BGCI comprises 30% bitcoin and ether, 14.13% ripple, 10.63% bitcoin money, 6.11% EOS, 3.77% litecoin, 1.67% sprint, 1.66% monero, and 1% ethereum basic and zcash.
Novogratz got down to launch a crypto hedge fund initially however he halted this plan in December and unveiled Galaxy Digital as a substitute.
He stated on Markets Now that “we are hoping that this index becomes the bellwether and benchmark for the whole crypto space that hedge funds are compared to it… and that is seen as a watershed moment where crypto starts to become an indigestible asset class from an institutional perspective.” He also asserted:
The Bloomberg Galaxy Crypto Index brings unprecedented transparency to the crypto markets.
“It’s almost essential for every investor to have at least 1% to 2% of their portfolio” in crypto, he emphasised.
In November final 12 months, Novogratz stated on CNBC’s Fast Money that “Bitcoin could be at $40,000 at the end of 2018. It easily could,” including that “Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well.”
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