Mike Novogratz and Bloomberg Team Up to Create the First Institutional-Grade Benchmark for Crypto Market

Bloomberg announced today that they are teaming up with Galaxy Digital Capital Management, founded by Michael Novogratz, to create the Bloomberg Galaxy Crypto Index.

The index is the world's first institutional-grade benchmark for cryptocurrency markets, designed to track the most liquid portion of the crypto market.

The index is market capitalization-weighted, measuring the performance of ten major cryptocurrencies including Bitcoin, Ethereum, Ripple, Zcash, Monero and others - ranking factors include mediums of exchange, smart contract protocols, privacy assets and stores of value.

This is an important piece of the architecture that institutional accounts need to treat crypto as a new asset class.

Galaxy Digital Capital Management is an asset management firm focused on crypto assets.

The launch of the index is another step towards institutional adoption of the crypto markets.

Bloomberg has stated that "The BGCI offers the first institutional benchmark for the cryptocurrency market."

"The 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".

After coming out of retirement to start a $500 million dollar crypto hedge fund, Novogratz quickly decided to shelve the project to launch Galaxy Digital Capital Management LP instead. Novogratz has stated he believes the index will bring "Unprecedented transparency" to the market.

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