One of the indices will track companies such as Coinbase, Square and Argo Blockchain
Investment manager Galaxy Digital Holdings and index provider Alerian and S-Network Global Indexes have announced a partnership that will see the two companies launch several indices focused on crypto-currencies.
In an announcement released on August 24, the companies unveiled the Alerian Galaxy Global Blockchain Indexes and the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Indexes, two groups of four indexes aimed at meeting the growing demand from institutional investors in the blockchain and crypto-currency sectors.
The Alerian Galaxy Global Blockchain Index group will include an equity index (BLKCHN), stocks, trusts, exchange-traded products (ETP) index (BLKCNP), a stocks and futures index (BLKCNF) and a blockchain-focused index called BCHAIN.
As for the crypto-currency-focused indices, investors will have the choice of a crypto-currency index (CRYPTE), a stock and futures index (CRYPTF), an ETP index (CRYPTP) and a crypto-currency-focused blockchain index (CRYPTO).
“Index investing is constantly evolving and expanding into new asset classes and exposures to support ever-increasing investor demand,” said Robert Hughes, Alerian’s COO.
The indices open up the entire ecosystem to investment management advisors, including those at large asset management firms, said Steve Kurz, head of asset management at Galaxy Digital.
The various indices will offer exposure to publicly traded companies as well as certain investment vehicles in the blockchain and crypto space, including miners, crypto infrastructure companies, companies that have purchased cryptos and blockchain users.
For example, the CRYPTE Index will track major crypto-currency companies including Coinbase, Square, Voyager Digital and Argo Blockchain. Investors in the BCHAIN index, meanwhile, will get an index that tracks leading companies such as Microsoft, Facebook and Mastercard.
According to the press release, the indices will feature passive and rules-based investing. The indices will also be rebalanced monthly, with each portfolio receiving equal weighting.