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Billionaire Bitcoin Bull Partners with Bloomberg to Launch Cryptocurrency Index Platform

Bitcoin proponent and former Goldman Sachs trader Mike Novogratz has inked a partnership deal with Bloomberg to launch a cryptocurrency index platform. Novogratz’s Galaxy Digital Capital Management LP and Bloomberg will establish the Bloomberg Galaxy Crypto Index (BGCI). The index service will provide trusted asset tracking for 10 of the most liquid cryptocurrencies in the market.
The Bloomberg Galaxy Crypto Index
The BGCI is part of the Bloomberg Index Services Limited catalog and is administered by the company. The platform offers institutional-grade benchmarking standards for cryptocurrencies.
Speaking on the launch, Alan Campbell, the Bloomberg Indices Global Product Manager, said:
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.

How the Index Works
The BGCI will monitor and track the performance of the ten largest cryptocurrencies based on their market cap. The index operates via a rules-based methodology. To ensure accuracy, all data used by the index must pass the due-diligence framework set by both Bloomberg and Galaxy Digital.
Not all cryptocurrencies are the same. As a result, the BGCI’s cryptocurrency tracking pool covers the different classes of digital coins. These classes are privacy assets, mediums of exchange, stores of value, and smart contract tokens. The ten cryptos contained in the BGCI paradigm at its launch are Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Dash, Monero, Ethereum Classic, and Zcash.
The maximum and minimum cap for any coin on the index is 30 percent and 1 percent respectively. At inception, both Bitcoin and Ethereum make up 30 percent of the BGCI while Zcash is at one percent. Commenting on the way the BCGI is structured, Steve Kurz, Asset Management Chief at Galaxy Digital, said:
We are thrilled to partner with Bloomberg on the BGCI.  The index’s independent, rules-based methodology provides a strong foundation on which the cryptocurrency ecosystem will continue to grow and mature.

The BGCI will Become the S&P 500 for Cryptos
Mike Novogratz, the founder of Galaxy Digital, expressed optimism at the new BGCI. He described the index as another milestone in the march towards the mainstream adoption of Bitcoin. He also said the platform adopts the rigorous approach utilized by mainstream benchmarking services to the crypto market.
Commenting on the potential importance of the BGCI, Novogratz said:
We wanted an institutional player for the whole ecosystem, and I think it’s important for the crypto ecosystem. You’re starting to see more institutional participation, and what they’re looking for is this architecture — here’s an index that will feel like the S&P 500 in a few months, that people can benchmark themselves against.
Bloomberg and Galaxy Digital aren’t the first to launch a crypto benchmarking platform. Upbit, the South Korean cryptocurrency exchange, recently created a cryptocurrency index service.
Do you think the BGCI will become the de facto crypto benchmarking service for mainstream investors? Let us know in the comments below.
Image courtesy of Bitcoinist archives and Flickr.

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