MV Index Solutions (MVIS), the indexing division of ETF provider VanEck, has unveiled the MVIS Bitcoin US OTC Spot Index, the first bitcoin price index based on US feeds from the more established over-the-counter (OTC) digital asset trading operations.
Gabor Gurbacs, Director of Digital Asset Strategies at VanEck.
“We are excited to be the first provider to launch a bitcoin index based on the pricing feed of OTC trading desks,” said Thomas Kettner, Managing Director at MV Index Solutions.
“This enables clients who trade over the counter to use this index as a reliable benchmark for their trades or potential investment products.”
The index references the return on the spot price of bitcoin through data provided by three well-established providers of cryptocurrency OTC liquidity: Circle Trade, Cumberland and Genesis Trading.
Its launch brings the total number of MVIS digital asset indices to 24.
Jason Leung, Global Head of Cumberland, commented, “As a global leader in cryptoassets, we are committed to creating opportunities that help the ecosystem evolve in a sustainable way. We are proud to provide our markets to the MVIS Bitcoin US OTC Spot Index, which will provide access to robust data and bring more transparency to the OTC space.”
“MVIS is making significant advancements in providing the institutional community with reliable and transparent data for the bitcoin market,” added Elisabeth Carpenter, COO, Circle. “We are happy to have Circle’s OTC platform, Circle Trade, participate in the MVIS spot index for the cryptocurrency.”
“Genesis Global Trading has been an important player in the OTC marketplace for years,” said Michael Moro, CEO of Genesis Trading. “We’re excited to participate in the MVIS pricing index to help the space mature and gain further legitimacy.”
OTC exchanges are becoming increasingly popular for large institutional investors and high-net worth individuals who may feel restricted by the inadequate infrastructure and daily limits of standard cryptocurrency exchanges. OTC markets are also gaining traction in jurisdictions where traditional cryptocurrency exchanges are battling legal restrictions.
The new index provides a new level of insight into this market and adds further visibility to the cryptocurrency space – a characteristic that the US Securities and Exchange Commission has stated needs to be developed before it gives the green light on the launch of bitcoin-tracking ETFs.
VanEck has already stated its interest in launching a bitcoin ETF. The firm partnered with blockchain company SolidX to propose a physically backed ETF that would be insured against loss or theft of underlying bitcoin. The two companies filed a joint request with the SEC for approval of the fund, which is currently under review.
Gabor Gurbacs, Director of Digital Asset Strategies at VanEck, commented, “VanEck continues to support market structure developments in the digital asset space. MVIS’ work with our core OTC partners, Cumberland, Circle Trade and Genesis Trading, is a major step forward towards greater transparency and price discovery in the institutional bitcoin market. The index may pave the way for institutionally oriented products, such as ETFs, as well as provide further tools to institutional investors to execute institutional size trades at transparent prices on the OTC markets.”