Bloomberg and Galaxy Digital have joined hands to launch the Bloomberg Galaxy DeFi index (DEFI). The index is set up to track movements in the sector’s largest DeFi protocols by market value.
A press release explained that the index will measure the performance of some of the biggest protocols that offer financial services to customers without using any central intermediaries, such as exchanges, banks, and brokerages.
Speaking on the motivation for the index, Alan Campbell, the head of product management for Bloomberg’s multi-asset index business said the DeFi sector is growing and can no longer be ignored by investors.
“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 offering.”
As of August 1, 2021, the index comprised the following assets, with their corresponding weights:
The press release adds that the assets in the index are chosen based on their custody readiness, institutional trading, and quality of pricing. Each included asset will not control less than 1% or more than 40% of the overall value.
Image Credits: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
