The demand for investment opportunities in crypto and blockchain projects is growing. Alerian and Galaxy Digital are now launching eight indices.
Galaxy Digital Holdings, headed by Michael Novogratz, has allied itself with the independent index provider Alerian by jointly launching eight different crypto indices on August 24th. Both companies want to offer international investors the opportunity to participate in the future development of the blockchain and cryptocurrency market. Because the demand for investment opportunities in blockchain and crypto projects continues to grow.
The eight indices are rebalanced every month and the individual assets are weighted equally. They focus on the sectors of crypto mining, blockchain infrastructure, as well as companies that keep cryptocurrencies on their balance sheets and projects that use blockchain technology to offer customers added value. Both companies have grouped the indices according to two “families”.
First crypto index family – “Global Blockchain”
The first group focuses on blockchain technology. The following indices belong to this first index family with the name “Alerian Galaxy Global Blockchain Index”:
- 1) Alerian Galaxy Global Blockchain Equity Index (BLKCHN)
- 2) Alerian Galaxy Global Blockchain Equity and Futures Index (BLKCNF)
- 3) Alerian Galaxy Global Blockchain Equity, Trusts & ETPs Index (BLKCNP)
- 4) Alerian Galaxy Global Blockchain Index (BCHAIN)
According to an information page from Alerian, the BCHAIN index contains the following stocks: Grayscale Bitcoin Trust (BTC), Facebook Inc, Northern Data AG, Mastercard Inc and Alphabet Inc. Galaxy Digital and Alerian therefore do not only take “pure” crypto companies into theirs Indexes on. They also include companies that use blockchain technology. Like Mastercard, for example, which is currently issuing crypto cards in more and more countries.
Second index family: focus on direct crypto-reference
The second family is primarily dedicated to companies that work directly with cryptocurrencies or blockchain technology, such as Bitcoin mining companies. This index family is called “The Alerian Galaxy Global Cryptocurrency-Focused Blockchain” and contains the following indices:
- 1) Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity Index (CRYPTE)
- 2) Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity and Futures Index (CRYPTF)
- 3) Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts & ETPs Index
- 4) The Alerian Galaxy Global Cryptocurrency-Focused Blockchain Index (CRYPTO)
A look at the “CRYPTE” index reveals that this time another German company has managed to be included: Bitcoin Group SE, owner of the German crypto portal “bitcoin.de”. This index also contains some of the largest mining companies, such as Marathon Digital Holdings Inc, Argo Blockchain PLC or Bitfarms LTC.
Galaxy Digital Holding and Alerian are pursuing the following goal with the eight indices:
Our goal is to continue providing investors with seamless, institutional and innovative access to the burgeoning ecosystem of digital assets. For the first time, thanks to the indices we have developed in collaboration with Alerian, consultants have for the first time access to the entire ecosystem, including the operating companies and crypto products that are traded on the open market,
says Steve Kurz, partner and head of asset management at Galaxy Digital.
Blockchain market heavy by 2030 trillion US dollars
The outlook for the blockchain sector remains positive. If the consulting firm Gartner has its way, the added value generated by blockchain will be trillion US dollars: “Gartner predicts that the business value generated by blockchain technology will grow rapidly and reach 176 billion US dollars by 2025 and US $ 176 billion by 2030 3, Will reach $ 1 trillion ”. The eight new indices give interested investors further opportunities to participate passively in the developments of this flourishing and promising market.