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Pending Bitcoin-ETF – VanEck creates a price index based on data from OTC platforms



Over-the-counter cryptocurrency dealers Genesis Trading, Cumberland and Circle Trade will provide their data for the MVIS Bitcoin US OTC Spot Index, which will help financial institutions determine the price of Bitcoin. The investment company VanEck will control the new product, reports The Block .

It is expected that the MVIS Bitcoin US OTC Spot Index will become a fundamentally new tool for financial institutions, as they previously received data only from cryptocurrency exchanges.

“Transparency comes to the over-the-counter market. Previously, no one published these prices, and all transactions took place behind the scenes, ”said Gabor Gurbah, head of digital assets strategy at VanEck.

Taking into account the fact that over-the-counter platforms are regulated by the Commodity Futures Trading Commission of the USA (CFTC), the company hopes that this approach will help dispel regulators' doubts about possible manipulations in the cryptocurrency market.

“To give an answer to doubts related to the possible manipulation of the exchange rate, Bitcoins, the storage of which will carry out the trust, will be evaluated in accordance with the index of the US over-the-counter market,” says VanEck documents sent to the US Securities and Exchange Commission (SEC ).

It is assumed that the MVIS Bitcoin US OTC Spot Index will be used by institutional investors in the decision-making process, it is also planned to use it in Bitcoin-ETF activities, which VanEck does not intend to abandon its plans to launch.

However, a number of experts consider the new instrument imperfect due to the engagement of over-the-counter sources.

“The degree of transparency will be much higher if we use practical displayed quotes, ” said CoinRoutes CEO Dave Weisberger.

According to some estimates, trading volumes on OTC-platforms significantly exceed cryptocurrency exchanges, which in recent days have exceeded $ 20 billion.

Earlier, BlockchainJournal reported that the SEC decision to launch Bitcoin-ETF from VanEck and SolidX companies will be made until March 2019 .

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