Galaxy Digital and Bloomberg Join Forces to Launch DeFi Index

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DeFi
Galaxy Digital and Bloomberg Join Forces to Launch DeFi Index

Galaxy Digital and Bloomberg tie up to launch the Bloomberg Galaxy DeFi Index.

Launching the DeFi-Focused Index

The rise of decentralized finance (DeFi) as a force within the wider crypto industry cannot be overlooked.

According to a press release issued on August 19, Galaxy Digital has partnered with Bloomberg to expand its catalog of crypto offerings with the launch of the Bloomberg Galaxy DeFi Index.

In addition to the launch of the index, Galaxy Digital’s fund platform, Galaxy Fund Management will offer a passively managed fund tracking the performance of DeFi dubbed the Galaxy DeFi Fund Index.

Notably, the fund is aimed toward measuring the performance of the leading DeFi protocols by market cap that offer financial services without any intermediary including brokerages, exchanges, and banks.

Commenting on the development, Alan Campbell, Head of Product Management for Bloomberg’s Multi-Asset Index business, noted:

“Decentralized finance is growing as the next major investment theme within crypto. As liquidity 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.”

Similar sentiments were echoed by Steve Kurz, Partner and Head of Asset Management at Galaxy Digital. Kurz said:

“Galaxy continues to pioneer inroads for institutions seeking exposure to the innovation happening within the crypto ecosystem. The blockchain-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.”

At the time of writing, the said Index comprises of several leading DeFi tokens Uniswap (UNI), Aave (AAVE), Maker (MKR), Compound (COMP), Yearn.Finance (YFI), Synthetix (SNX), SushiSwap (SUSHI), 0x (ZRX), Uma (UMA).

DeFi Space Gaining Traction

The DeFi space has come a long way since the Uniswap-induced “DeFi Summer” of 2020 that witnessed the rise of several DeFi protocols offering innovative financial products and services.

However, this rise has not got unnoticed by regulators the world over.

As reported by BTCManager, SEC Chairman Gary Gensler recently said that some features of DeFi could make it fall under the regulatory ambit of the financial watchdog.

Aisshwarya Tiwari

Aisshwarya is currently working as the Chief Editor at crypto.news and holds more than 4 years of experience in the digital assets industry. He holds an undergraduate degree in Commerce with Honours and a post-graduate diploma in Liberal Studies. Before entering the crypto industry, Aisshwarya worked as an SAP Consultant for a global IT firm. He also cleared the CFA Level 1 exam before pivoting to the crypto industry due to its novel and exciting propositions.