News reaching Ethereum World News indicate that MV Index Solutions – based in Frankfurt Germany – has launched the MVIS Bitcoin US OTC Spot Index (MVBTCO). This new index is the first Bitcoin index based on price feeds from OTC (Over The Counter) digital asset trading operations in the United States. The index shows the spot price of Bitcoin based on its value as recorded by three leading providers of OTC liquidity: Circle Trade, Cumberland and Genesis Trading.
Index Could Pave the Way for Future ETF Approvals at the SEC
According to the Abacus Journal, such a data feed has been in the works for quite some time as exhibited by documents submitted to the SEC. With each of the three mentioned firms opening up their books to help markets better understand the price movements of BTC and other major cryptocurrencies, the additional transparency might boost the chances of current and/pr future Bitcoin ETF applications at the SEC.
The Director of Digital Asset Strategies at VanEck/MVIS, Gabor Gurbacs, explained this further:
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,
Elisabeth Carpenter, COO at Circle, added the following with regards to the new index:
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.
Such an Index Provides A Benchmark for Clients
Thomas Kettner, Managing Director at MV Index Solutions, further explained how the new index would provide a reliable benchmark for clients. With the index, investors can make sound investment decisions on their trades or potential investment products. Jason Leung, Global Head of Cumberland, also added that the index would provide further transparency in the Bitcoin OTC space.
What are your thoughts on the new crypto index based on OTC data from Cumberland, Genesis and Circule? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.