Industry Updates

VanEck edges closer to a Bitcoin ETF

George Geddes


Amun AG launched a crypto ETP (HODL5) in Switzerland last week, a world's first product referencing a basket of cryptocurrencies. HODL5 is comprised of five of the leading crypto assets with the pricing for the ETP being taken from MV Index Solutions.

MVIS, a subsidiary of the ETF provider VanEck, has been persistent in its attempt of launching a Bitcoin ETF having made numerous applications to the US Securities and Exchange Commission. There is still an application waiting for a response by the SEC. The reason it has been rejected every time is due to the extreme volatility the cryptoasset market is facing, but also thanks to uncertainty around the custody arrangements involved in holding bitcoin. (Bitcoins are typically held in a "bitcoin wallet", yet that type of custody arrangement is not quite satisfactory for institutional investors or the SEC).

The market faced a crash last week, with majority of the leading coins falling to their lowest prices of the year so far.

However another step in the right direction was made today following the launch of MV Index Solutions' Bitcoin Index. MVIS Bitcoin US OTC Spot Index (MVBTCO) displays the spot price of the coin based on three crypto exchanges who have been determined to be leaders in Over The Counter liquidity according to the index provider. These exchanges being Circle Trade, Cumberland and Genesis Trading. This brings the total number of digital asset indices MVIS has released to 24.

Gabor Gurbacs, Director of Digital Asset Strategies at MVIS said in an announcement: "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."

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