Key Takeaways
- • Galaxy Digital Holdings and Alerian partnered with S-Network Global Indexes to launch eight passive, rules-based indexes tracking cryptocurrency miners, infrastructure technologies, cryptocurrency buyers, and blockchain users across global public markets.
- • The Alerian Galaxy Global Indexes target institutional and retail investors seeking exposure to blockchain and crypto sectors, addressing a gap in institutional-grade investment vehicles in a nascent but rapidly expanding market.
- • Gartner forecasts blockchain business value will reach $176 billion by 2025 and $3.1 trillion by 2030, underscoring the growth thesis behind the index suite's creation.
- • The indexes employ monthly rebalancing and equal weighting methodology to create diversified portfolio exposure across the cryptocurrency and blockchain ecosystem.
- • The partnership expands Galaxy Digital's data and indexing footprint beyond asset management into the institutional index licensing space, positioning the company to capture demand for passive crypto exposure vehicles.
Summary
Galaxy Digital Holdings (TSX: GLXY), through its Galaxy Fund Management division, announced on August 24, 2021, a partnership with index provider Alerian and S-Network Global Indexes to launch the Alerian Galaxy Global Blockchain Indexes and Alerian Galaxy Global Cryptocurrency-Focused Blockchain Indexes. The partnership addresses growing institutional and retail investor demand for exposure to cryptocurrency and blockchain technology sectors through transparent, rules-based investment vehicles.
The index suite covers four primary investment categories: cryptocurrency miners, cryptocurrency infrastructure technologies, cryptocurrency buyers, and blockchain users. The indexes are constructed as passive, equally weighted, and rebalanced monthly to maintain diversification across the ecosystem. This structure provides exposure to public companies and select investment vehicles actively engaged in global cryptocurrency and blockchain sectors, addressing what the companies describe as limited access to institutional-grade crypto investment vehicles in a nascent market with high barriers to entry.
The timing reflects significant growth projections in blockchain technology. Gartner forecasts that blockchain-generated business value will accelerate from $176 billion by 2025 to $3.1 trillion by 2030, establishing a macro backdrop supporting expansion of institutional investment products in the sector. Galaxy Digital, a leading financial services and investment management firm in digital assets and blockchain technology, positions the partnership as critical infrastructure for capturing this projected growth.
The indexes employ a clearly defined, rules-based methodology overseen by an impartial Index Committee, underscoring transparency and governance standards expected by institutional investors. By leveraging Alerian's expertise in index construction and S-Network's distribution capabilities, Galaxy Digital expands its digital asset footprint beyond traditional portfolio management into the licensing and indexing space, a strategic move to capture demand for passive crypto exposure as the sector matures and institutional capital allocation increases.
The index suite covers four primary investment categories: cryptocurrency miners, cryptocurrency infrastructure technologies, cryptocurrency buyers, and blockchain users. The indexes are constructed as passive, equally weighted, and rebalanced monthly to maintain diversification across the ecosystem. This structure provides exposure to public companies and select investment vehicles actively engaged in global cryptocurrency and blockchain sectors, addressing what the companies describe as limited access to institutional-grade crypto investment vehicles in a nascent market with high barriers to entry.
The timing reflects significant growth projections in blockchain technology. Gartner forecasts that blockchain-generated business value will accelerate from $176 billion by 2025 to $3.1 trillion by 2030, establishing a macro backdrop supporting expansion of institutional investment products in the sector. Galaxy Digital, a leading financial services and investment management firm in digital assets and blockchain technology, positions the partnership as critical infrastructure for capturing this projected growth.
The indexes employ a clearly defined, rules-based methodology overseen by an impartial Index Committee, underscoring transparency and governance standards expected by institutional investors. By leveraging Alerian's expertise in index construction and S-Network's distribution capabilities, Galaxy Digital expands its digital asset footprint beyond traditional portfolio management into the licensing and indexing space, a strategic move to capture demand for passive crypto exposure as the sector matures and institutional capital allocation increases.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.