Investing in DeFi – Galaxy Digital and Bloomberg launch a quality index fund.2 min read
If you regularly monitor cryptocurrency news, you probably haven’t missed the name Mike Novogratz. The former manager of the so-called hedge funds are currently behind one of the largest financial companies that actively invests in cryptocurrencies such as BTC or ETH. We are talking about Galaxy Digital.
Index fund from Galaxy Digital
As has been mentioned several times in recent times, the DeFi sector is enjoying increasing popularity. The influx of new investors brings constant updates of projects, which ultimately again increase people’s interest.
Galaxy Digital comes with a very interesting novelty, which will please especially fans of the decentralized finance sector, the so-called DeFi. The decentralized index fund is basically a tool that monitors the performance of the latest Bloomberg Galaxy DeFi index. Investors will thus have access to returns that achieve results based on the performance of DeFi tokens. Exposure is defined mainly for major decentralized platforms such as UniSwap, Aave, Maker and Yearn.
Investing in DeFi
The above-mentioned decentralized platforms offer investors really decent returns, whether on the cryptocurrents themselves or when valuing stablecoins. This is also a positive result of the growing interest of investors.
The index fund, which is managed and supported by companies such as Galaxy Digital and Bloomberg, is in fact an attractive offer that will not be rejected. The products and currencies themselves that have entered the fund’s exposure have been carefully selected based on long-term price and custody developments in the United States.
Of course, the protocols themselves will undergo ongoing analysis, which will update the product portfolio on a monthly basis.
Composition of the fund
The current state and composition of the portfolio as of August 1 looks as follows:
– 40% UNI
– 18% AAVE
– 12.7% MKR
– 10% COMP
– 5.4% YFI
– 5% SNX
– 4.3% SUSHI
– 1.8% UMA
Statement by Steve Kurza, Head of Galaxy Digital as Head of Asset Management:
“The blockchain-based infrastructure behind the DeFi sector is evolving faster and faster. There are clear examples of how this technology can disrupt standard financial services. Our unique DeFi index fund provides investors with an institutional exposure to the future of financial services. ”