VanEck partners with exchanges to launch OTC index

20 Nov, 2018
by Alberto Arnaldo
VanEck partners with exchanges to launch OTC index

In a move that might help with the SEC’s upcoming ETF decision, the asset manager pretends to shed light over the sometimes-shady OTC market.

Three of the main actors in the OTC crypto market, Genesis Trading, Cumberland and Circle Trade, have announced that they will be putting data together to form an index named MVIS Bitcoin US OTC Spot Index.

VanEck is the parent company of MVIS, and according to Gabor Gurbacs, their head of digital asset strategy, in an interview with the crypto news site The Block, this move will bring transparency to the OTC market. Gurbacs also welcomed the role being played by other firms such as Intercontinental Exchange, which prefers to stick to public exchanges as a price reference. 

The SEC will also be most likely pleased with the new index, given that in past fillings they assured that crypto held by an ETF should be valued based on a US OTC desk index, as such prices are not as vulnerable to manipulation as those of common exchanges, provided that the desk is undergoing due diligence.

Will this development be enough to ensure the SEC’s approval? Let us know what you think in the comments section!

Read more: VanEck: institutional investors don't care if BTC ends 2018 at $3,000 or $10,000

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