A sign of cryptocurrencies becoming mainstream is today’s launch of a Bloomberg Index. The company has joined with Galaxy Digital Capital Management to create the index which will be called the Bloomberg Galaxy Crypto Index (BGCI).
“Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies,” said Alan Campbell, Global Product Manager for Bloomberg Indices. “The index brings our rigorous approach to index construction to cryptos and will provide investors with a transparent benchmark to gauge the performance of the broader market.”
Current Cryptocurrency Weightings
Bitcoin Cash 10.65%
Ethereum Classic 1.00%
These weightings don’t follow CoinMarketCap. At first glance, it looked like they were limiting the index to live blockchains. But EOS is the odd one out. Looking at the index methodology, having a system in production is not one of the criteria.
- 1. Trades in USD
- 2. Trades on a minimum of two Bloomberg-approved Pricing Sources (must have KYC and AML in place and provide Bloomberg with an organization chart)
- 3. Minimum 30-day median daily value traded of $2 million across a minimum of two eligible Pricing Sources
- 4. Free-floating prices (not pegged to the value of any asset, including a currency or physical commodity)
- 5. Cryptocurrency must meet the above eligibility requirements for three consecutive monthly rebalances
- 6. Hard Forks are considered under the same criteria as any established cryptocurrency
- 7. Index is limited to the largest twelve eligible Cryptocurrencies by Market Capitalization