What You Need to Know
- The Galaxy DeFi Index Fund tracks the performance of the Bloomberg Galaxy DeFi Index.
- This is the fourth collaboration between Bloomberg and Galaxy Digital for indexes in the DeFi universe.
- The new fund has a $1 million minimum and 2% management fee.
In yet another sign of Wall Street embracing decentralized finance, Bloomberg and Galaxy Digital have announced the launch of the Bloomberg Galaxy DeFi Index (DEFI), and Galaxy Digital introduced the Galaxy DeFi Index Fund, which tracks the performance of the index.
This is the fourth collaboration between the two firms. In May 2018, they launched the Bloomberg Galaxy Crypto Index (BGCI), comprising multiple cryptocurrencies, which then became the foundation of the Galaxy Crypto Index Fund.
Following that, the two firms collaborated on the Bloomberg Galaxy Bitcoin Index (BTC) and the Bloomberg Galaxy Ethereum Index, which were underpinning for the Galaxy Bitcoin Fund and the Galaxy Ethereum Fund.
“Decentralized finance is growing as the next major investment theme within crypto,” said Alan Campbell, head of product management for Bloomberg’s Multi-Asset Index business, in a statement. “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 index offering.”
Steve Kurz, partner and head of asset management at Galaxy Digital, which is headed by founder and CEO Michael Novogratz, says this new technology is disrupting financial services in real time.