Mike Novogratz has long been a bitcoin bull. His company’s end product pushes him further into the Ethereum field.
Galaxy Digital, a crypto-based investment management company founded by Novogratz in 2017, today announced the creation of the Galaxy Defi index fund, which allows traditional investors to access the most unconventional digital currencies.
The Bloomberg Galaxy Defi Index, on which the new fund is based, provides investors with nine Ethereum-based Defi management tokens: Uniswap, Aave, Maker, Compound, desire.Finance, synthetic, Sushiswap, 0x and uma. The biggest weight, 40%, comes from uniswap’s uni token, which is now the largest Defi token with a market capitalization of $ 15.5 billion, starting Wednesday.
Assets and their weight will vary depending on corporate trading and retention readiness and pricing quality in the US each month,”he said.
Defi, an acronym for decentralized finance, refers to blockchain-based protocols that exclude intermediaries from transactions. Instead, they use computer code, known as smart contracts, to automate asset exchanges, loans and the like. Increasingly, these protocols are managed by token holders who use themselves for voting.
Galaxy Digital already offers a variety of cryptocurrency funds, including bitcoin and Ethereum; the Crypto Index Fund also combines bitcoin cash, lightcoins and EOS. The company has assets under management of more than $ 1.6 billion. But this week the company reported a loss of $ 175 million in Q2, pointing to a 34% drop in total digital asset prices and a 41% drop in the price of bitcoin in the quarter.”the Defi Foundation provides an opportunity to diversify its product offerings.
Defi protocols-and the management tokens that allow them to emerge-are a rapidly growing sector of the crypto economy. About $ 50 billion in assets go through the index through protocols, more than ten times as much as last year. Prices at the same time
