Bloomberg Partners with Galaxy Digital for DeFi Benchmark

Galaxy Digital, the US-based financial services and investment management company, along with Bloomberg, announced the launch of the Bloomberg Galaxy DeFi Index (ticker: DEFI) yesterday. According to Bloomberg, the company has expanded its crypto offering to meet the growing demand for decentralized financial products.

In an official announcement, Bloomberg outlined that the Galaxy Fund Management, Galaxy Digital’s funds platform, is now offering the Galaxy DeFi Index Fund. The newly launched benchmark is owned and administered by Bloomberg Index Services Limited and is co-branded by Galaxy.

DeFi sector saw immense growth in the first half of 2021. Leading DeFi assets including UNI, AAVE, MKR and COMP have seen substantial gains since the start of 2021. The Bloomberg Galaxy DeFi Index has been designed to track the performance of the largest decentralized finance protocols by market cap.

"Decentralized finance is growing as the next major investment theme within crypto. As Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and institutional custody solutions continue to grow, DeFi has become an increasingly compelling option for institutional investors, and we'll continue working with Galaxy to expand our crypto index offering," Alan Campbell, Head of Product Management for Bloomberg's Multi-Asset Index business, said in the press release.

Structure of DeFi Index

According to Bloomberg, Uniswap (UNI) accounts for nearly 40% of the weight of the index. AAVE asset accounts for 18%, followed by Maker (MKR) at 12.7%. Additionally, the index includes other leading DeFi assets like Compound (COMP), Yearn.Finance (YFI), Synthetix (SNX), SushiSwap (SUSHI), ZXR (0x) and UMA.

"Galaxy continues to pioneer inroads for institutions seeking exposure to the innovation happening within the crypto ecosystem," said Steve Kurz, Partner and Head of Asset Management at Galaxy Digital. "The Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term-based infrastructure behind DeFi is maturing at an accelerating rate and clear examples of how this new technology can disrupt financial services are emerging in real-time. This partnership with Bloomberg and our DeFi Index Fund provides investors with data and tools that deliver calculated exposure to the future of financial services."