Bloomberg Galaxy Crypto Index – Cryptocoin is Definitely Mainstream Now.
I caught Michael Novogratz sitting down with Maria Bartiromo on Fox Business just now I froze as I heard about The Bloomberg Galaxy Crypto Index for the first time. What first stunned me was the Bloomberg name. Bloomberg has not been known to be altogether objective on their coverage of Bitcoin and other cryptocurrencies. Their involvement along with billionaire Michael Novogratz makes this new offering a cryptocoin investment worthy of close inspection.
Why? Michael Novogratz started investing in Bitcoin when it was just $96 dollars.
The investment philosophy of The Bloomberg Galaxy Crypto Index mirrors that of most mutual funds; devote capital to multiple investments so as to balance risk against reward. As such the fund is currently focused on ten cryptocoins (Bitcoin – 30 %, Ethererum 30%, Ripple at an astonishing 14$ followed by Bitcoin Cash, EOS, Litecoin and others). with plans to expand to including 15 cryptocurrencies in the near future.
Mike and Maria got into a deep discussion of the allocations to the Bloomberg Galaxy Crypto Index and I found myself shaking my head in agreement and appreciation to the approach. While there’s been talk for a long time of a crypto index fund I’m impressed by the implementation and administration of this new cryptocoin index.
The weighted average of the The Bloomberg Galaxy Crypto Index distributes risk and reward very evenly among some of the most recognizable cryptocoins. I’m not particularly fond of seeing Ripple in their portfolio as the flow and supply of XRP can be too easily manipulated. Yet Ripple remains on the radar of many digital currency traders so I can understand the allocated weight of Ripple in their investment mix.
The emergence of this cryptocoin investment index fund is just another sign of things to come. For mainstream investors unsure of which cryptocoins to invest in, the Bloomberg Galaxy Crypto Index may be the best way to go.