New York-based investment management firm, VanEck’s subsidiary company MV Index Solutions made a buzz when the firm announced the launch of its bitcoin concerning index- MVIS Bitcoin U.S OTC Spot Index. As per the company’s statements, the index will take proud of being the first index in the United States that will monitor the performance of bitcoin that operates through the over-the-counter platforms.
The concerned index will render the spot price of bitcoin from many reputed OTC platforms, including Circle Trade and Cumberland.
MV Index Solutions is involved in the efficient utilization of investment indices for the development, licensing, and monitoring of different classes of assets such as fixed income markets, equities, etc. The Spot Index which will stalk only Bitcoin has led to an impressive increase in MVIS’s portfolio to 24 digital assets indices.
The Managing Director of MV Index Solutions, Thomas Kettner, stated that the company is excited at the launch of the bitcoin index which will serve the OTC trading desks as a reliable and benchmark symbol for their trades or investment products.
Gabor Gurbacs who is the director of Digital Asset Strategies in VanEck/MVIS considers the launch as win for the institutional investors as the index would cater to more transparency and better price discovery. These were necessary for the development of the digital currency arena. In a word with Bitcoin Magazine, the potential leader said that he believes that the index will foster greater validation to the amateur digital currency market that has undergone a lot of struggle to win the approval of the regulators.
Adding further, he said that he firmly believes that the introduction of an index like OTC would act as a stepping stone for more institutional-friendly and securely regulated investment resources, similar to the bitcoin ETF.
The Bitcoin Index is expected to provide the potential investors a thorough knowledge about the price fluctuations of the digital coin. With the help of this index investors would get a more transparent and accurate pricing data which was until now was limited to cryptocurrency exchanges.
VanEck and SolidX entered the market with a physically backed bitcoin ETF. They wanted to enlist it on Cboe BZX U.S Equities Exchange and therefore applied for the same.
Unfortunately, the U.S Securities and Exchange Commission didn’t find it apt for approval. The agency postponed its decision to August and again to September. As the nodal agency has begun its proceedings concerning the approval of the VanEck/SolidX ETF, it has looked upon for the valuable views of the members of the public.
A significant reason for this delay of the process is the SEC’s concern regarding the market manipulation and illegal practices which have become an inevitable part of cryptocurrency world.
VanEck, with the help of MVIS, wants to portray its capabilities to the regulatory bodies. The index uses the pricing source that operates through OTC counters. These desks are subject to several rigorous practices, legal disclosures, and investor protection rules. All these measures lie in perfect sync with the SEC eligibility criteria for a bitcoin ETF.
Earlier this week saw a significant event when the Switzerland regulatory authorities gave a nod to blockchain startup Amun AG for listing a crypto exchange-traded product, which gets its pricing details from VanEck’s MVIS.