Galaxy Digital launches DeFi-sector index and fund

The cryptocurrency-trading bank Galaxy Digital, in partnership with Bloomberg, unveiled a new index that tracks the state of the decentralised finance (DeFi) sector.

The Bloomberg Galaxy DeFi Index benchmark comprises tokens selected ‘on the basis of readiness for institutional trading and custody in the United States, as well as the quality of pricing’. The index will be rebalanced on a monthly basis.

As of 1 August 2021, its basket included:

• Uniswap (UNI) with a 40% weighting;
• Aave (AAVE) — 18%;
• Maker (MKR) — 12.7%;
• Compound (COMP) — 10%;
• Yearn.Finance (YFI) — 5.4%;
• Synthetix (SNX) — 5%;
• SushiSwap (SUSHI) — 4.3%;
• 0x (ZRX) — 2.8%;
• UMA (UMA) — 1.8%.

Meanwhile, Galaxy Fund Management’s DeFi-focused passive fund Galaxy DeFi Index Fund was launched. The fund’s unit price is calculated based on the new index.

The minimum investment is $1 million. The fund is open to weekly subscriptions for accredited investors.

The structure carries a 2% management fee. Its custodian is Gemini Custody, administrator MG Stover. Deloitte acts as auditor.

In July, the digital-asset manager Grayscale Investments also launched an investment fund focused on the DeFi sector. The fund tracks the CoinDesk DeFi Index.

As reported in the second quarter of 2021, the consolidated loss of Galaxy Digital Holdings totaled $175.8 million, compared with a profit of $35.3 million for the same period last year.

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