One of the indexes 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 crypto-focused indexes.
In an announcement published on 24 August, the companies unveiled the Alerian Galaxy Global Blockchain Indexes and the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Indexes, two groups of four indexes targeted at meeting growing demand by institutional investors in the blockchain and cryptocurrency sectors.
The Alerian Galaxy Global Blockchain Index group of indexes will comprise an equity index (BLKCHN), equity, trusts, an exchange-traded products (ETPs) index (BLKCNP), an equity and futures index (BLKCNF), and a blockchain-focused index dubbed BCHAIN.
As for the crypto-focused indexes, investors will have a choice between a crypto equity index (CRYPTE), equity and futures index (CRYPTF), ETPs index (CRYPTP), and crypto-focused blockchain Index (CRYPTO).
"Index-based investing is continuously evolving and expanding into new asset classes and exposures to support the ever-growing demand from investors," Robert Hughes, the COO of Alerian, said.
The indexes open up the entire ecosystem to investment management advisors, including those at major asset management companies, Galaxy Digital’s head of asset management Steve Kurz said.
The various indexes will offer exposure to publicly traded companies as well as select investment vehicles in the blockchain and crypto space, including miners, crypto infrastructure companies, firms that have bought crypto and blockchain users.
For instance, the CRYPTE Index will track major cryptocurrency companies, including Coinbase, Square, Voyager Digital and Argo Blockchain. Investors in the BCHAIN Index on the other hand will get an index that tracks leading companies such as Microsoft, Facebook and Mastercard.
According to the press announcement, the indexes will feature passive and rules-based investing. The indexes will also be rebalanced monthly, with each portfolio benefiting from equal weighting.