Galaxy Digital Launches DeFi Index Fund, Galaxy-Bloomberg Index

The new DeFi index fund, like all three other Galaxy funds based on the Bloomberg/Galaxy indexes, is available only to accredited investors — individuals with income above $200,000 (or $300,000 for a couple) in the past two years, a net worth above $1 million as an individual or couple, or a Series 7, 65 or 82 license.

The DeFi index measures the performance of the largest decentralized financial protocols by market value. These software protocols are standards and rules written to govern specific tasks or activities and to provide liquidity to the DeFi system. They are designed to offer financial services without a central financial intermediary like a brokerage, a bank or an exchange.

Constituents of the new index are selected on the basis of institutional trading, custody readiness in the U.S. and the quality of pricing, according to the joint company announcement. Each constituent cannot represent more than 40% of the index or less than 1% of its overall value and they can change on a monthly basis. As of Aug. 1, there were nine constituents, including three — Uniswap, Aave and Maker — which account for more than 70% of the index.

The DeFi index fund has a 2% management fee like the Galaxy Crypto Index Fund, but it requires a minimum investment of $1 million, unlike the crypto index fund, which has a $25,000 minimum like the Galaxy Bitcoin and Ethereum funds. They, however, charge 1% management fees for investments of $100,000 and 1.25% for smaller investments.