VanEck’s Germany Subsidiary Launches Bitcoin OTC Spot Index
MV Index Solutions, a subsidiary of ETF giant firm VanEck, has announced the launch of a Bitcoin (BTC) index product based on price feeds from three leading over-the-counter (OTC) platforms.
MV Index Solutions has attracted a lot of interest in its efforts that have seen it develop, monitor and license its MVIS Indices.
The indices are licensed, allowing them to provide an underlying index to a number of financial products, including equity and digital assets.
According to the firm’s press release published November 20, the MVIS Bitcoin U.S. OTC Spot Index (MVBTCO) tracks the performance of bitcoin and gives spot prices as shown at three of top OTC liquidity providers in the U.S, including Circle Trade, Cumberland and Genesis Trading.
Thomas Kettner, the managing director at MV Index Solutions, said that the product would enable those clients that utilize the OTC desk access to a “reliable benchmark” that will prove suitable for traders.
Also, the MVIS index could provide an excellent opportunity for more “institutionally oriented products” to hit the market.
According to VanEck’s Director of Digital Asset Strategies Gabor Gurbacs, the index could pave the way for exchange-traded funds (ETFs) and provide the tools that make institutional investment easy to effect by leveraging the OTC market’s transparent prices.
The U.S SEC’s decision on exchange-traded funds
VanEck collaborated with SolidX, an enterprise-focused financial services company in a joint application to list a physically-backed Bitcoin exchange-traded fund.
In the application made earlier this year, the VanEck/SolidX ETF proposal would have been listed on CBOE’s BZX Equities exchange.
The U.S. Securities and Exchange Commission (SEC), however, did not approve the fund when it came up for consideration.
Instead, the agency postponed making any decision concerning the ETF in August; a move that has seen the proposal’s fate remains unknown pending a new determination from the securities watchdog.
The SEC rejected an earlier SolidX BTC ETF in 2017, and in October 2018, published a memorandum from its meeting with the two companies in which VanEck and SolidX seek to address concerns highlighted by the Commission.
When the SEC postponed a decision on the ETF citing ‘significant’ threats in relation to “fraudulent acts and manipulation,” VanEck representatives stated that the commission’s staff was engaging in shifting goal posts.
The Securities Exchange Act gives the agency permission to extend the timeframe for making a decision, which in the case of VanEck’s ETF application, puts the deadline on December 29.
Meanwhile, the securities agency is set to determine what happens with another set of nine bitcoin ETFs it rejected last August.
As the crypto community awaits SEC’s decision on the numerous ETF proposals before it, the world’s first multi-crypto ETP (exchange-traded product) is set for release on Switzerland’s leading stock exchange SIX.
The exchange will list the product under the HODL index and will give institutional investors exposure to five of the top crypto assets in the market, including Bitcoin (BTC) Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).
Like the MVIS Bitcoin OTC Index, the Amun AG ETP will ostensibly be managed by a subsidiary of VanEck’s, a German-based index unit.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.