MVIS launches OTC Biotcoin Index through Circle Trade Cumberland, and Genesis Trading
According to an MV Index Solution’s press release, the firm on Tuesday launched an over-the-counter Bitcoin index called the MVIS Bitcoin US OTC Spot Index (MVBTCO). The OTC liquidity is provided by three major digital assets trading firms namely Circle Trade, Cumberland, and Genesis Trading. The number of digital asset indices on the MVIS portfolio has increased to 24 with this launch. This is the first of sorts in terms of Bitcoin index based out of US price feeds.
The Managing Director of MV Index Solutions was excited to be the first of its kind to launch a bitcoin index based on OTC trading desk’s pricing feeds.
“This enables clients who trade over the counter to use this index as a reliable benchmark for their trades or potential investment products,” said Thomas Kettner, Managing Director, MV Index Solutions.
Jason Leung, Global Head, Cumberland revealed that the MVBTCO Index will provide strong data and make it easier for transparency to take place on the OTC space.
“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,” said Jason Leung.
According to VanEck, the parent company of MVIS, this index creates a path for institutionally attached products such as ETFs.
“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,” said Gabor Gurbacs, Director, Digital Asset Strategies, VanEck/MVIS.
The OTC trading focuses both on institutional investors as well as in jurisdictions where cryptocurrency exchanges are facing legal restrictions.
Binance Labs also provided $3 million to the US-Based OTC trading firm Koi trading.
“OTC trading in China boasts a significant daily volume of at least RMB 150 million despite the broad-based ban of centralized cryptocurrency trading in China,” said the company.