Tanya Abrosimova
Independent Analyst
- VanEck creates Bitcoin index based on pricing from US-based OTC trading platforms.
- The company hopes that this tool will soften regulators up.
VanEck's subsidiary MV Index Solutions has launched Bitcoin index MVIS Bitcoin US OTC Spot Index. This new investment product will show the spot Bitcoin price of bitcoin aggregated from three leading OTC liquidity providers - Genesis Trading, Cumberland and Circle Trade.
“We are excited to be the first provider to launch a bitcoin index based on the pricing feed of OTC trading desks. This enables clients who trade over the counter to use this index as a reliable benchmark for their trades or potential investment products,” Thomas Kettner, Managing Director at MV Index Solutions commented.
MVIS Bitcoin US OTC Spot Index is supposed to provide financial institutions with a totally new tool for monitoring Bitcoin price. Previously, they obtained data only from cryptocurrency exchanges, the new index will provide them with more reliable and transparent data on pricing.
"MVIS is making significant advancements in providing the institutional community with reliable and transparent data for the Bitcoin market. We are happy to have Circle's OTC platform, Circle Trade, participate in the MVIS spot index for the cryptocurrency," said Elisabeth Carpenter, COO, Circle added.
Considering that over-the-counter trading venues are regulated by the US Commodity Futures Trading Commission (CFTC), the company hopes to dispel regulatory concerns about potential price manipulations on cryptocurrency markets.
Yesterday we reported that the US Department of Justice initiated an investigation of Tether related price manipulations that might have triggered the spectacular crypto rally last year.
VanEck and SolidX submitted applications to SEC for launching bitcoin ETFs, however, the Commission that was supposed to deliver the verdict in summer but postponed the decision until March 2019.
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