Over the years, the price index system has provided a simple way of representing market data of selected stocks and analyzing changes over time, thereby giving investors and traders a handful of information about the general market allowing them to make better decisions about cryptocurrency investments seeing the quality of data provided by the index. In the light of this, Bloomberg – a global provider of financial data, statistics and information – in conjunction with Galaxy Digital Capital, a crypto merchant bank, has launched the Bloomberg Galaxy Crypto Index (BGCI) which is aimed at tracking the top 12 USD-traded cryptocurrencies.
The currencies to be listed on the first major price Index (BGCI) include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), EOS, Litecoin (LTC), Dash, Monero (XMR), Ethereum Classic (ETC), and ZCash (ZEC).
Bloomberg Galaxy Crypto Index is aimed at tracking the market cap of the first twelve cryptocurrencies in terms of market cap, creating the world’s first institutionalized crypto index in the world.
Here is a short overview of the weightings that can be found in this index:
Michael Novogratz, the CEO and founder of Galaxy Digital Capital Management, being enthusiastic with this new development says, “the BGCI is set to offer transparency to the cryptomarket unlike any other market index; helping to drive the crypto revolution forward into its full potential.” Bloomberg Indices is known for providing transparency and security in traditional markets and what they’ve determined to recreate in the cryptocurrency economy. It would be great to see how the number one institutional benchmarker in the industry will deal with the volatile nature of cryptocurrency.
We need a clear vision to make the best decisions, and for many in the cryptocurrency ecosystem, there is a real need for clarity.
Their goal is to create a transparent benchmark for cryptocurrencies, that will help investors build better portfolios, as well as enable a more accessible entry in the decentralized economy, making it available for many skeptics, and pushing the blockchain revolution forward. Having Bloomberg join in this ecosystem is both surprising and scary.
Featured Image via BigStock.