Cryptocurrency trading bank Galaxy Digital has partnered with Bloomberg to launch a new index that tracks the state of the decentralised finance (DeFi) sector.
The Bloomberg Galaxy DeFi Index benchmark includes tokens selected "based on readiness for institutional trading and storage in the US, as well as pricing quality". The index will be rebalanced on a monthly basis.
As of 1 August 2021, its basket includes:
At the same time, Galaxy Fund Management launched the DeFi-focused passively managed Galaxy DeFi Index Fund. Its units are priced based on the new index.
The minimum investment threshold is set at $1 million. The fund is open for weekly subscription to accredited investors.
The structure charges a 2% capital management fee. Its custodian is Gemini Custody and the administrator is MG Stover. Deloitte is responsible for the audit.
In July, digital asset manager Grayscale Investments also launched an investment fund focused on the DeFi sector. The entity tracks the CoinDesk DeFi Index.
As a reminder, Galaxy Digital Holdings reported a combined loss of $175.8m for Q2 2021, compared to a profit of $35.3m in the same period last year.