Bitcoin Investment

VanEck’s MVIS Debuts First Ever Bitcoin OTC Index, Binance Invests $3M in OTC Trader

Esther Kim | Nov 20, 2018 | 10:00

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Over-the-counter (OTC) trading gained visibility and prestige this week as MVIS launched the first cryptocurrency OTC index and Binance Labs made fresh investments.

Circle, Genesis, And Cumberland: Bitcoin OTC Index Source

In a press release November 20, German-based MVIS unveiled its latest digital asset index composed of what it calls “three of the leading providers in OTC liquidity,” namely Circle Trade, Cumberland and Genesis Trading.

The product, dubbed the MVIS Bitcoin US OTC Spot Index (MVBTCO), is the twenty-fourth such index to debut at the firm.

“We are excited to be the first provider to launch a bitcoin index based on the pricing feed of OTC trading desks,” MVIS managing director Thomas Kettner commented in the press release.

This enables clients who trade over the counter to use this index as a reliable benchmark for their trades or potential investment products.

@MVISIndices partners with OTC trading titans @CumberlandSays @circlepay and @GenesisTrading to bring to market the first established #OTC #Bitcoin #Index. Ticker: #MVBTCO. Giant leap in #Bitcoin and #digitalassets market structure development! More info: https://t.co/LfMRTG1ndR pic.twitter.com/Ax7ktWk9iT

— Gabor Gurbacs (@gaborgurbacs) November 20, 2018

Bitcoin 00 OTC trading has slowly increased in both acceptance and popularity this year, forming a focus for both institutional investors and those in jurisdictions where traditional cryptocurrency exchanges face legal restrictions.

MVIS is a subsidiary of VanEck, the investment manager currently lobbying to release what would potentially be the world’s first Bitcoin exchange-traded fund (ETF) in the US market.

“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,” VanEck/MVIS director of digital asset strategies Gabor Gurbacs added.

Binance Throws Weight Behind OTC Trading

The news comes the same day as Binance Labs, the investment and incubator arm of cryptocurrency exchange Binance, announced it had contributed $3 million to US-based OTC trading firm Koi Trading.

In its own release, Binance said the impetus behind the move was a desire to “build the infrastructure which provides the freedom of value exchange globally,” hinting at the activity around OTC markets in countries such as China despite the notional ban on traditional exchanges.

“…Koi still finds under-served clientele in both China and the US,” the company said.

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.

What do you think about the OTC index and investment? Let us know in the comments below!

Images courtesy of Shutterstock, Twitter