Index partners

Bloomberg / Galaxy family of indices

Bloomberg / Galaxy family of indices

The Bloomberg Galaxy Crypto Indices launched in May 2018 with the Bloomberg Galaxy Crypto Index (BGCI), a market capitalization-weighted index designed to measure the performance of the largest digital assets traded in USD. The Bitcoin (BTC) and Ethereum (ETH) Indices followed, which are designed to measure the performance of a single bitcoin or Ether traded in USD.

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The Bloomberg Galaxy Bitcoin Index (“BTC”) is designed to measure the performance of 1 Bitcoin traded in USD. The index is owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy Digital. Bitcoin pricing is sourced from the Bloomberg Bitcoin Crypto Fixing Rate (CFIX). The CFIX was launched in May of 2018; prior data was provided retroactively by Bloomberg.

The Bloomberg Galaxy Ethereum Index (“ETH”) is designed to measure the performance of a single Ether traded in USD. The index is owned and administered by Bloomberg Index Services Limited and is co-branded with Galaxy Digital. Ether pricing is sourced from the Bloomberg Ethereum Crypto Fixing Rate (CFIX). The CFIX was launched in May of 2018; prior data was provided retroactively by Bloomberg.

The Bloomberg Galaxy Crypto Index (“BGCI”) is designed to measure the performance of the largest cryptocurrencies by market capitalization. Index constituents represented in the Fund will be selected based on qualified exchange and daily liquidity qualifications set forth by BGCI rules. Each constituent will represent a holding no more than 40% of the Fund and no less than 1% of the Fund’s overall value. Cryptocurrencies will be considered for addition/removal to/from the Fund on a monthly basis

The Bloomberg Galaxy DeFi Index ("DEFI") is designed to measure the performance of the largest decentralized finance (DeFi) protocols in the digital asset ecosystem. DeFi is an emergent sector of digital assets that seeks to replicate financial functions without relying on central financial intermediaries such as brokerages, exchanges, or banks. The constituents represented in DEFI are selected based on institutional trading and custody readiness in the US, as well as quality of pricing. Each constituent will represent no more than 40% and no less than 1% of the index’s overall value. DeFi protocols will be considered for addition or removal to or from the Index on a monthly basis.


Vision Hill
Crypto Hedge Fund indices

Vision HillCrypto Hedge Fund indices

The Vision Hill Crypto Hedge Fund Indices are a family of crypto hedge fund indices owned and administered by Vision Hill Group, which Galaxy Digital acquired in May 2021, expanding the Galaxy Fund Management brand. The Vision Hill Crypto Hedge Fund Indices represents the overall performance of actively managed crypto and blockchain-focused hedge funds.

CRYPTO HEDGE FUND

Composite Index

SEPTEMBER 2021
-1.28%
Latest Value
719.4
YTD
189.76%
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The Vision Hill Composite Index design captures the breadth of crypto hedge fund performance across all strategies and represents the crypto hedge fund category as a whole. It acts as the headline index, which includes all types of strategies. According to Vision Hill's proprietary methodology, the three sub-indices (Fundamental, Quantitative, Opportunistic) divide the constituents into their respective primary strategy classification. These primary strategy sub-indices are designed to provide more granular relative benchmarks based on the different strategies employed by crypto hedge fund managers.

YTD
177.14%
2020
223.60%
2019
18.52%
2018
-35.27%
CRYPTO HEDGE FUND

Fundamental Index

SEPTEMBER 2021
0.35%
Latest Value
1260.4
YTD
344.36%
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Long Only – Fundamental Long Only strategies employ investment processes based on extensive, thorough, and repeatable research designed to identify a fundamental case for value, growth, or appreciation in the network or token. Various quantitative and qualitative metrics and early crypto valuation techniques are used to select cryptoassets for investment that have the potential to accrue large amounts of value. These managers find assets they have high conviction in and buy and hold these assets for an identified investment period.

Long / Short  – Fundamental Long / Short strategies similarly employ extensive research in the space, but instead of only focusing on buying and holding assets that managers believe will accrue value, they also short-sell assets that they believe are expected to decrease in value. Long / short strategies can have directional bias to the upside or downside, or can be more directionally neutral by focusing on relative value between various cryptoassets.

Multi-Strat – Fundamental Multi-Strat strategies are employed by managers that utilize multiple techniques to drive investment returns. Managers in this category often supplement their core fundamental approach with smaller allocations to quantitative strategies, or to options, derivatives, lending, staking, or other active network participation techniques to drive returns. Additionally, some managers invest in both the liquid and private / venture markets out of the same hedge fund structure in a hybrid fashion. We often see these venture investments placed into side pockets due to their generally illiquid nature for longer periods of time.

YTD
301.19%
2020
423.15%
2019
13.22%
2018
-52.11%
CRYPTO HEDGE FUND

Quantitative Index

SEPTEMBER 2021
-3.88%
Latest Value
525.8
YTD
66.86%
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Directional – Quantitative Directional strategies employ sophisticated quantitative analytical techniques based on price data and various model signals to determine timing and execution of directional positioning. Models and trading utilized by managers can be fully systematic (no human intervention) or often have some discretionary overlay to interpret the signals or to continually optimize the strategy and allocations to various strategies. Directional strategies can include momentum, trend following, mean reversion, sentiment, algorithmic market making, high frequency trading, and others. Quantitative directional strategies generally maintain varying levels of net long or net short exposure to the market over various investment periods and market cycles.

Market Neutral  –  Quantitative Market Neutral strategies similarly employ sophisticated quantitative techniques and models to determine timing and execution of trades. Market Neutral strategies differ from their directional counterpart by reducing the directional exposure of the strategy to create a market neutral or zero beta exposure to the market. Market neutral strategies should have very low correlation to the directional beta of the crypto market. Market Neutral strategies normally focus on various forms of price arbitrage or market inefficiencies, including exchange arbitrage, basis arbitrage, triangular arbitrage, protocol arbitrage, interest rate arbitrage, and other forms of arbitrage.

YTD
73.59%
2020
144.67%
2019
25.65%
2018
2.51%
CRYPTO HEDGE FUND

Opportunistic Index

SEPTEMBER 2021
1.50%
Latest Value
82.9
YTD
16.85%
View info

Credit / Yield – Opportunistic Credit / Yield strategies employ traditional credit and lending business models applied as a fund strategy in the crypto space. One type of credit strategy focuses on originating fiat-based loans backed by various forms of crypto collateral (most commonly BTC). These loans are then combined in a portfolio and generate an interest rate yield for the portfolio. Another type of credit / yield strategy focuses on digital credit extended via decentralized finance (“DeFi”) protocols in the form of permission-less loans by lending, borrowing, utilizing flash loans, or yield farming various decentralized protocol tokens. Yet another example of a yield strategy includes selling covered calls to generate a fixed yield component as an overlay to an existing beta position.

Options  –  Opportunistic Options strategies employ sophisticated options trading techniques and derivatives trades to capitalize on market movements, mispricings, inefficiencies, arbitrage opportunities, volatility, or outright directional bets. Options strategies utilize the growing options markets in crypto from providers like CME, Bakkt, Genesis, LedgerX, and Deribit among others.

YTD
15.12%
2020
35.02%
2019
17.10%
2018
-55.15%

These Indexes do not reflect management fees and transaction costs that are associated with an investment in a fund. Investors cannot invest directly in the Index. Past performance is no guarantee of future results.

Alerian Galaxy Global Blockchain and Crypto Indexes

The Alerian Galaxy Global Blockchain and Crypto Indexes embrace crypto futures, trusts, ETPs, and/or companies, listed on globally recognized exchanges, that are materially engaged in the development of blockchain technology, crypto mining, crypto buying, or enabling technologies that facilitate the transfer, custody, and issuance of digital assets. 

Included in the Indexes are companies engaged in the development of blockchain technologies and related technology creators and producers that enable the development of blockchain technology and/or for the purpose of digital assets.

Rules-Based

The Alerian Galaxy Global Blockchain and Crypto Indexes depend on a clearly defined rules based methodology, which is overseen by an impartial Index Committee. No discretion is exercised in compiling the index and a pre-defined screening protocol assures a consistent, transparent and arms-length compilation process.

Global

The Alerian Galaxy Global Blockchain and Crypto Indexes embrace public companies and select investment vehicles from around the world. As a result, the indexes offer full exposure to the rapidly growing global cryptocurrency and blockchain sectors.

There are currently eight indexes in the Alerian Galaxy Global Blockchain and Crypto Index Family.

These Indexes do not reflect management fees and transaction costs that are associated with an investment in a fund. Investors cannot invest directly in the Index. Past performance is no guarantee of future results. By clicking on each of the Indexes above, you will be directed to Alerian’s website and leaving Galaxy’s website. The content of the web pages may change without notice and is the responsibility of Alerian. We are not responsible for the content, views, or privacy policies of the Alerian site.