The new index tracks the performance and financial transactions of the most important decentralised financial protocols, such as Uniswap or Aave

Bloomberg announced yesterday that it was launching a benchmark for decentralised finance (DeFi) through a collaboration with digital asset financial services and investment management company Galaxy Digital.

The Bloomberg Galaxy DeFi Index uses the ticker DEFI. It is being launched alongside a passively managed fund called the Galaxy DeFi Index Fund that tracks its performance. This fund can be found on the Galaxy Fund Management platform.

Heads of Product Management at Bloomberg’s Multi-Asset Index Business, Alan Campbell, explained , that “Decentralised finance” is becoming the next major investment theme in crypto. As liquidity and institutional custody solutions continue to grow, DeFi has become an increasingly compelling option for institutional investors, and we’ll continue working with Galaxy to expand our crypto index offering.”

Cobranded with Galaxy, this benchmark is managed by Bloomberg Index Services. It will measure the performance of the largest protocol in DeFi according to market value. In the selection of protocols for inclusion in DEFI, quality of pricing, institutional trading, and readiness for custody were all considered.

Galaxy Digital Partner, and Head of Asset Management Steve Kurz added: ” The blockchain-based infrastructure behind DeFi continues to evolve at an accelerating pace and clear examples of how the new technology can disrupt financial service are emerging in real time. This partnership with Bloomberg and our DeFi Index Fund provides investors with data and tools that deliver calculated exposure to the future of financial services.”

As of the start of this month, the index comprises 40% Uniswap (UNI), 18% Aave (AAVE), 12.7% Maker (MKR), 10% Compound (COMP), 5.4% Yearn Finance (YFI), 5% Synthetix (SNX), 4.3% SushiSwap (SUSHI), 2.8% 0x (ZRX) and 1.8% UMA (UMA).

Each month, DeFi protocol additions and deletions to the index will be taken into consideration.

With DeFi’s explosive growth, more and more investors are looking for DeFi exposure. In fact, just last month, Grayscale announced the launch of its own DeFi investment product which tracks the CoinDesk DeFi Index.

The Grayscale DeFi Fund is similar to the Bloomberg Galaxy DeFi Index except that it includes Curve (CRV), Bancor Network Tokens (BNT) and is missing 0.x.