Michael Novogratz Partners with Bloomberg to start a Cryptocurrency Index
Galaxy Digital Management LP has partnered with Bloomberg to a Cryptocurrency Benchmark Index. Galaxy Digital is one of the world’s leading digital assets firm founded by Michael Novogratz. The fund was launched under the name Bloomberg Galaxy Crypto Index (BGCI).
Bloomberg is one of the most influential websites in the financial space and by launching the Index can pave the way for many investors to jump on board on the Crypto train. Michael Novogratz who is a former Goldman Sachs trader is said to be one of the richest people in Crypto. He raised $250 Million for his venture – Galaxy Digital. Novogratz has been a believer in Bitcoin since 2015 and also recently criticized Bitcoin Cash and said that Bitcoin Core is the real Bitcoin.
Bloomberg announced in a press release that the creation of this fund is an important step in the evolution of the digital Asset space. According to the announcement, The index is said is designed to track the performance of the largest, most liquid portion of the cryptocurrency market.
Currently, the Index has the top 10 Crypto according to market cap in their portfolio. The majority of the portion is given to Bitcoin and Ethereum with 30% each followed by XRP at 14% and Bitcoin Cash at 10.65% and followed by others in the top 10 with a small portion.
Michael Novogratz told Business Insider:
“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.”
We are witnessing a lot of institutional players building infrastructure around Cryptocurrencies which will pave the way for mainstream adoption. Recently Goldman Sachs had announced that they will be building a crypto-trading desk and also there was news that NYSE secretly working on launching their own exchange. Nasdaq CEO had made a comment that they are also open to becoming a Crypto exchange.
Earlier this Year Coinbase had announced the launch of their Index Fund.
Michael Novogratz Tweeted:
So excited to announce our partnership with Bloomberg. The herd is on the move. This is an important piece of the architecture that institutional accounts need to treat crypto as a new asset class. https://t.co/TRSY97XjCl
— Michael Novogratz (@novogratz) May 9, 2018
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