HomeBitcoin NewsVanEck Subsidiary Launches Bitcoin US OTC Spot Index

VanEck Subsidiary Launches Bitcoin US OTC Spot Index


MV Index Solutions has launched a Bitcoin index which is based on price feeds from leading OTC cryptocurrency players.

OTC Price Based BTC Index

MV Index Solutions (MVIS), a Frankfurt-based subsidiary of VanEck, has launched the MVIS Bitcoin US OTC Spot Index (MVBTCO). This is a first-ever Bitcoin index that is based on price feeds from established OTC operations from the US.

VanEck is a New York-headquartered investment management firm with over $47 Billion of assets under its management.

The development was reported earlier on Tuesday by Business Wire. According to the press release, the index shows the spot price of BTC based on the feed from three leading players in OTC space – Circle Trade, Cumberland and Genesis Trading.

With MVBTCO launch, the total number of digital asset indices managed by MVIS has gone up to 24.

Stakeholder Reactions

Thomas Kettner, Managing Director at MV Index Solutions, expressed his excitement over being the first provider to launch a Bitcoin index based on the pricing feed of OTC trading desks.

Kettner believes that the move would enable clients who trade over the counter to use this index as a reliable benchmark for their trades.

Jason Leung, Global Head of Cumberland, said:

As a global leader in crypto-assets, we are committed to creating opportunities that help the ecosystem evolve in a sustainable way. We are proud to provide our markets to the MVBTCO Index, which will provide access to robust data and bring more transparency to the OTC space.

Appreciating the efforts of MVIS in providing the institutional community with reliable and transparent data for the Bitcoin market, Elisabeth Carpenter, COO, Circle, stated:

We are happy to have Circle’s OTC platform, Circle Trade, participate in the MVIS spot index for the cryptocurrency.

Michael Moro, CEO of Genesis Trading, observed:

Genesis Global Trading has been an important player in the OTC marketplace for years. We’re excited to participate in the MVIS pricing index to help the space mature and gain further legitimacy.

Better Market Transparency

Bitcoin and cryptocurrency prices reported by data aggregators like coinmarketcap.com are from centralized exchanges which are used mostly by retail investors.

The whales and institutional investors trade mostly over the counter and the trade volumes and prices of OTC desks are not available to the public.

Gabor Gurbacs, Director of Digital Asset Strategies at VanEck/MVIS, noted:

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.

The opening up of price feeds by the three OTC firms will bring transparency in price movements of Bitcoin and create confidence among regulators and boost the prospects of ETF approval.

What are your thoughts on the Bitcoin index based on OTC price feeds? Let us know in the comments below.

Images courtesy of ShutterStock


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