The Fund seeks to track the newly launched
Bloomberg Galaxy DeFi Index
NEW YORK, Aug. 19, 2021 /CNW/ - Galaxy Digital Holdings
Ltd. (TSX: GLXY) ("Galaxy Digital" or the
"Company"), the pre-eminent global provider of blockchain and
cryptocurrency financial services for institutions, today announced
the launch of the Galaxy DeFi Index Fund, a passively managed fund
that seeks to track the performance of the newly-launched Bloomberg
Galaxy DeFi Index (ticker: DEFI).
As one of the fastest growing sectors in crypto, DeFi brings
financial services on-chain, enabling participants to borrow, lend,
and exchange assets on blockchains governed by smart contracts
instead of through centralized intermediaries. DeFi is distinct
because it expands the use of blockchain from simple value transfer
to more complex financial use cases. At the time of writing, users
have deposited over $80.7 billion
worth of crypto into DeFi smart contracts up from $4.7 billion one year ago today.
The Galaxy DeFi Index Fund seeks to provide institutional
investors access to returns based on the performance of DeFi
through a simple, secure vehicle with exposure to the largest, most
liquid portion of the decentralized finance crypto market, one of
the fastest-growing segments of the crypto ecosystem. The fund is
seeded by NZ Funds, a wealth management firm that manages over
$2bn of New Zealanders' savings.
"Galaxy continues to pioneer inroads for institutions seeking
exposure to the innovation happening within the crypto ecosystem,"
said Steve Kurz, Partner and Head of
Asset Management at Galaxy Digital. "The blockchain-based
infrastructure behind DeFi is maturing at an accelerating rate and
clear examples of how this new technology can disrupt financial
services are emerging in real-time. Our unique DeFi Index Fund
provides investors with institutional-grade exposure to the future
of financial services."
The Bloomberg Galaxy DeFi Index is designed to measure the
performance of the largest decentralized finance (DeFi) protocols
by market capitalization. The benchmark is owned and administered
by Bloomberg Index Services Limited and is co-branded with Galaxy
Fund Management.
The constituents represented in DEFI are selected based on
institutional trading and custody readiness in the United States, as well as quality of
pricing. Each constituent will represent a hold of no more than 40%
of the Index and no less than 1% of the benchmark's overall value.
DeFi protocols will be considered for addition to, or removal from,
the Index on a monthly basis.
As of August 1, 2021, the Index
consisted of the following assets and weightings:
- UNI Uniswap 40.0%
- AAVE AAVE 18.0%
- MKR Maker 12.7%
- COMP Compound 10.0%
- YFI Yearn.Finance 5.4%
- SNX Synthetix 5.0%
- SUSHI SushiSwap 4.3%
- ZXR 0x 2.8%
- UMA UMA 1.8%
About Galaxy Digital
Galaxy Digital (TSX: GLXY) is a
diversified financial services and investment management company
dedicated to the digital asset and blockchain technology sectors.
Galaxy Digital's team has extensive experience spanning investing,
portfolio management, capital markets, venture capital, asset
management, and blockchain technology. Galaxy Digital operates in
five synergistic business lines: Trading, Asset Management,
Principal Investments, Investment Banking, and Mining. Galaxy Fund
Management is the digital asset funds brand of the Asset Management
business. Galaxy Digital's CEO and Founder is Mike Novogratz. The Company is headquartered in
New York City, with offices in
Chicago, San Francisco, London, Amsterdam, Tokyo, Hong
Kong, the Cayman Islands
(registered office), and New
Jersey.
Disclaimers
The TSX has neither approved nor disapproved the contents of
this press release.
This press release is not an offer to sell or the solicitation
of an offer to sell or buy any security in any jurisdiction where
such an offer or solicitation would be illegal, nor shall there be
any sale of any security in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of that jurisdiction.
The private placement shares of the Galaxy DeFi Index Fund (the
"Fund") has not been registered under the Securities Act of 1933,
as amended (the "Securities Act") or any state securities laws, and
the shares are being offered pursuant to an exemption from
registration provided by Rule 506(c) of Regulation D under the
Securities Act and in reliance on similar exemptions under
applicable state laws. An investment in the shares of the Fund is
suitable only for sophisticated, well-informed investors, and
investors will be required to represent that they are accredited
investors as such term is defined in Rule 501(a) of Regulation D
under the Securities Act.
If any offer and sale of securities is made, it will be pursuant
to the confidential offering memorandum of the fund (the "Offering
Memorandum"). Any decision to make an investment in the Fund should
be made after reviewing such Offering Memorandum, conducting such
investigations as the investor deems necessary and consulting the
investor's own investment, legal, accounting and tax advisors in
order to make an independent determination of the suitability and
consequences of an investment.
Investing in the Fund and digital assets involves a substantial
degree of risk. There can be no assurance that the investment
objectives of the Fund will be achieved. Any investment in the Fund
may result in a loss of the entire amount invested. Investment
losses may occur, and investors could lose some or all of their
investment. Neither historical returns nor economic, market or
other performance is an indication of future results.
Decentralized Finance (or DeFi) refers to a variety of
blockchain-based applications or protocols that provide for
peer-to-peer financial services using smart contracts and other
technology rather than such services being offered by central
intermediaries. Common DeFi applications include borrowing/lending
Digital Assets and providing liquidity or market making in Digital
Assets. Because DeFi applications rely on smart contracts, any
errors, bugs, or vulnerabilities in smart contracts used in
connection with DeFi activities may adversely affect such
activities. DeFi lending is subject to counterparty risk and credit
risk, but because lending is automated through the DeFi protocol,
rather than individual decisions made by a portfolio manager on
behalf of a Fund, such risks may be exacerbated, particularly if
there are flaws in DeFi protocol's code or operation. DeFi
applications may involve regulated financial products or regulated
activities, however because of their decentralized nature, there is
generally no entity subject to regulatory supervision. Accordingly,
DeFi applications may be subject to more risks than engaging in
similar activities through regulated financial intermediaries. In
addition, in certain decentralized protocols, it may be difficult
or impossible to verify the identity of a transaction counterparty
necessary to comply with any applicable anti-money laundering,
countering the financing of terrorism, or sanctions regulations or
controls. All of these risks could cause the value of DeFi tokens
held by a fund to decline, including to zero.
Securities transactions are effected through Galaxy Digital
Partners LLC, a member of FINRA and SIPC
BLOOMBERG is a trademark or service mark of Bloomberg Finance
L.P. GALAXY is a trademark of Galaxy Digital Capital Management LP
(GDCM). Bloomberg Finance L.P. and its affiliates (collectively,
Bloomberg) are not affiliated with GDCM, the Galaxy Funds and their
respective affiliates (collectively, Galaxy). Bloomberg's
association with Galaxy is to act as the administrator and
calculation agent of the Indices (collectively, the "Index"), which
is the property of Bloomberg. Neither Bloomberg nor Galaxy
guarantee the timeliness, accurateness, or completeness of any data
or information relating to the Index or results to be obtained.
Neither Bloomberg nor Galaxy make any warranty, express or implied,
as to the Index, any data or values relating thereto or any
financial product or instrument linked to, using as a component
thereof or based on the Index (Products) or results to be obtained
therefrom, and expressly disclaims all warranties of
merchantability and fitness for a particular purpose with respect
thereto. To the maximum extent allowed by law, Bloomberg, its
licensees, Galaxy, and their respective employees, contractors,
agents, suppliers, and vendors shall have no liability or
responsibility whatsoever for any injury or damages—whether direct,
indirect, consequential, incidental, punitive, or otherwise—arising
in connection with the Index, any data or values relating thereto
or any Products—whether arising from their negligence or
otherwise.
SOURCE Galaxy Digital Holdings Ltd.