Michael Edward Novogratz, is a hedge fund manager, formerly of the investment firm Fortress Investment Group. In the years 2007 and 2008, he was ranked a billionaire by Forbes.
Prior to joining Fortress, he was a partner at Goldman Sachs where he spent lots of time working abroad including leadership roles in Asia and Latin America. Mr. Novogratz recently launched a cryptocurrency benchmark index in partnership with a privately held financial software, data, and media company called Bloomberg. The index was created to track the performance of the largest, most liquid coins that sums up to just ten cryptocurrencies.
This past Wednesday, Bloomberg along with Galaxy Digital Management alongside media outlet Bloomberg made public on Wednesday that they will be launching a cryptocurrency benchmark index. Galaxy Digital Capital Management is an asset management company devoted to the digital currency and blockchain sectors foundered by Mr. Novogratz himself. They have already decided on the name to give it and they will be calling it Bloomberg Galaxy Crypto Index (BGCI).
The announcement states that: the BGCI offers the first institutional grade benchmark for the cryptocurrency market. In addition to that, the index is designed to track the performance of the largest, most liquid portion of the cryptocurrency market. The BGCI is market capitalization- weighted and measures the performance of ten USD-traded cryptocurrencies, including bitcoin, Ethereum, Monero, ripple, and zcash.
Furthermore, the companies explain that: the index constituents are diversified across different categories of digital assets, including stores of value, mediums of exchange, smart contract protocols, and private assets. They added: “The index is owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy Digital Capital Management.”
After its establishment, the BGCI consists of up to 30 percent of Bitcoin and ether, about 14.13 percent of ripple, 10.63 percent of bitcoin cash, 6.11 percent of EOS, up to 3.77 percent of litecoin, 1.67 percent of dash, 1.66 percent of monero and 1 percent of Ethereum classic and zczash
Mr. Novogratz stated on Markets Now that: “We are hoping that this index becomes the bellwether and benchmark for the whole crypto space that hedge funds are compared to it and that Is seen as a watershed moment where crypto starts to become an indigestible asset class from an institutional perspective. He also mentioned that; the Bloomberg Galaxy Crypto Index brings in unprecedented transparency to the crypto markets. It’s almost essential for every investor to have at least 1 percent to 2 percent of their portfolio in crypto.”