Bloomberg and Billionaire Novogratz Team Up to Launch Crypto Price Index
Bloomberg LP and Billionaire bull Novogratz announced their partnership for Bloomberg’s new project –BGCI (Bloomberg Galaxy Crypto Index), on Wednesday.
Bloomberg Galaxy Crypto Index is being created to track the aggregate performance of all the large-cap cryptocurrencies. Their rigorous approach to create a crypto price index would help investors ascertain the performance of a basket of top cryptocurrencies.
Alan Campbell, Global Project Manager, Bloomberg Indices, said that the launch of BGCI connotes the growing interest in cryptocurrencies among investors.
According to him,
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.
Billionaire Mike Novogratz, formerly a hedge fund manager at an investment firm based in New York City managed to raise over $250 million to build a merchant bank for cryptocurrencies that would be publicly listed in Canada soon.
In his words, the cryptocurrency price index would bring ‘unprecedented transparency’ in the crypto world. He added that the team is very excited, as they are making a big contribution to the decentralized revolution through the creation of Bloomberg Galaxy Crypto Index.
BGCI, at launch, tracks ten cryptocurrencies, decided mainly by their market cap and a few other factors not known to us. These ten cryptocurrencies are Bitcoin, Ethereum, BCH, XRP, EOS, Litecoin, Monero, Dash, Zcash, and Ethereum Classic, in no particular order.
The index is surely going to appeal financial institutions, which have been for long, demanding transparency in the industry.
However, it is not the first to create a crypto price index; Coinbase and Grayscale launched their price index earlier this year.
The launch of such a price index was quite unexpected from Bloomberg after the interview last November where Bloomberg had joined Lloyd Blankfein, Goldman Sachs’s CEO, to bash cryptocurrencies and its role in shaping the future.
Recently though, both the companies have launched products relating to cryptocurrencies. Goldman Sachs unveiled its bitcoin trading desk last week.