The large finance portal Bloomberg and the crypto asset management Galaxy Digital Management have now expanded their joint information service to include some crypto projects in the field of decentralized financial services (DeFi).
According to a corresponding announcement, Bloomberg and Galaxy Digital will jointly launch a new index that will capture nine different DeFi projects. The projects in question are Uniswap (UNI), Aave (AAVE), Maker (MKR), Compound (COMP), Yearn.Finance (YFI), Synthetic (SNX), SushiSwap (SUSHI), 0x (ZXR) and Uma (UMA).
“Decentralized financial services are the next big investment area within the crypto industry,” as Alan Campbell, head of the index department at Bloomberg, explains in this context. And further: “The more liquidity and institutional custody options there are here, the more interesting the DeFi will be for institutional investors.”
According to Bloomberg, the DeFi projects included were selected “on the basis of institutional interest and available custody options” in the US. The course evaluation also plays an important role here. As the finance portal explains, none of the selected projects should account for less than 1% and not more than 40% of the total value of the index.
Galaxy Digital Fund Management, a subsidiary of Galaxy Digital, will also issue its own passive index fund, which tracks the performance of the index and will be operated under the ticker DEFI.
The new collaboration between Bloomberg and Galaxy Digital comes three years after the two partners set up a joint crypto benchmark for the first time. The index, founded in May 2018, looks at the ten largest cryptocurrencies on the market, including, of course, class leader Bitcoin (BTC) and follower Ether (ETH).
In February, asset management company Bitwise launched its own DeFi index fund, the DeFi Crypto Index Fund. Although Bitwise was up 46.4% last month, the index fund has been down 8.6% since its inception.