Billionaire Mike Novogratz and Bloomberg LP on declared on Wednesday that they are collaborating to launch the Bloomberg Galaxy Crypto Index (BGCI), which will track the aggregate productivity of a basket of large-cap cryptocurrencies.
Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies. 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.
Global Product Manager, Bloomberg Indices
Mike Novogratz, a former hedge fund manager at Fortress Investment Group, recently gained $250 million to found a “cryptocurrency merchant bank” that will be publicly-listed in Canada. He claimed that the cryptocurrency price index will enter “unprecedented transparency” to the markets.
The Bloomberg Galaxy Crypto Index brings unprecedented transparency to the crypto markets. We are excited to help drive the decentralized revolution forward through the creation of BGCI.
Ex-Hedge Fund Manager, Billionaire
The BGCI points out ten cryptocurrencies, which are based on market cap as well as other elements. They are: bitcoin (30%), ethereum (30%), XRP (14.14%), bitcoin cash (10.65%), EOS (6.11%), litecoin (3.77%), dash (1.67%), monero (1.66%), ethereum classic (1%), and zcash (1%). The index displays yet another step toward making the nascent cryptocurrency trading market more acceptable to mainstream financial establishments.
The index’s launch comes in the contrast with the past statements from Bloomberg founder and majority shareholder Michael Bloomberg, who is a card-carrying member of the “blockchain not bitcoin” brigade. Last November, Bloomberg joined Goldman Sachs CEO Lloyd Blankfein in an interview in which the two businessmen took turns bashing cryptocurrencies.
In the past week, however, both companies have revealed products that demonstrate that others in their firms think otherwise: Bloomberg, a cryptocurrency price index; Goldman, a bitcoin trading desk.