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August 23, 2021

Bloomberg Announces Launch of New Decentralized Finance Index for Institutions

By Daily Hodl Staff

Bloomberg, a global business and financial news giant, is expanding its coverage of the crypto markets with a new decentralized finance (DeFi) index.

In a new press release, Bloomberg says the company is teaming up with digital asset manager Galaxy Digital to launch Bloomberg Galaxy DeFi Index, which will use the ticker symbol “DEFI.” The statement adds that the DeFi benchmark is “owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy.”

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Alan Campbell, head of product management for Bloomberg’s multi-asset index business, says that DeFi is growing as the next big trend in crypto investments.

“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.”

According to the statement, the index will track the performance of the largest DeFi protocols by market value that offer financial services without any central intermediary, such as banks, exchanges or brokerages.

As of August 1st, the index consists of 9 DeFi assets with the following weightings:

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  • Uniswap (UNI) – 40.0%
  • Aave (AAVE) – 18.0%
  • Maker (MKR) – 12.7%
  • Compound (COMP) – 10.0%
  • Yearn.Finance (YFI) – 5.4%
  • Synthetix (SNX) – 5.0%
  • SushiSwap (SUSHI) – 4.3%
  • 0x (ZRX) – 2.8%
  • UMA (UMA) – 1.8%

Bloomberg says that each constituent in DEFI is selected based on institutional trading, ease of custody and “quality of pricing.” The benchmark will be evaluated on a monthly basis with constituents being subject to replacement.

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Featured Image: Shutterstock/Olga Salt