The founder of Galaxy Digital Capital Management LP is joining forces with Bloomberg LP to start an index for the cryptocurrency industry, according to a statement from the two companies.

Michael Novogratz, ex-hedge fund manager of the Fortress Investment Group, today launched the Bloomberg Galaxy Crypto Index (BGCI). According to the statement, the index is designed to track the performance of the largest, most liquid portion of the cryptocurrency market, which is made up of 10 digital currencies.

The ones currently listed are Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Dash, Monero, Ethereum Classic, and Zcash.

The index will be rebalanced monthly, with coins capped at 30 percent of their total, and can’t be less than one percent. At the time of publishing, Bitcoin and Ethereum both make up 30 percent, with Ripple at 14 percent. Ethereum Classic and Zcash are both listed at one percent.

Novogratz, a prominent bitcoin advocate, said:

“We wanted an institutional player for the whole ecosystem, and I think it’s important for the crypto ecosystem. You’re starting to see more institutional participation and what they’re looking for is this architecture. Here’s an index that will feel like the S&P 500 in a few months, that people can benchmark themselves against.”

The creation of the cryptocurrency index signals an important step in the growth of the digital currency space. In the early days of bitcoin’s existence this type of movement may not have seemed possible; however, the launch of the BGCI highlights the mainstream direction it’s heading. The BGCI utilizes a rules-based methodology and data from sources that have passed both Bloomberg and Galaxy Digital Capital Management’s due diligence processes.

“Today’s launch of the Bloomberg Galaxy Crypto Index reflects our clients’ growing interest in cryptocurrencies,” said Alan Campbell, Global Product Manager for Bloomberg Indices. “The index brings our rigorous approach to index construction to cryptos and will provide investors with a transparent benchmark to gauge the performance of the broader market.”

This latest move from Novogratz comes as market conditions rally after a slump in industry prices. Last December, Novogratz was forced to halt plans to launch his cryptocurrency hedge fund with outside investors due to volatility in market prices.

In 2017, Novogratz founded Galaxy Digital LP, the parent company, as a merchant bank with asset management, trading, and principal investing businesses. Unlike many who have commented negatively on the market, the former hedge fund manager is of the opinion that regulatory crackdowns won’t stop the continued spread of the industry.

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