MVIS and CryptoCompare Launch a New Index for Tracking Performance of Bitcoin

Siamak Masnavi

On Monday (November 25), MV Index Solutions ("MVIS"), the indexing division of U.S. asset manager VanEck, and CryptoCompare, a leading digital asset market data provider, launched the MVIS CryptoCompare Institutional Bitcoin Index (ticker: MVIBTC).

Frankfurt-based MVIS "develops, monitors and licenses the MVIS Indices, a selection of focused, investable and diversified benchmark indices." Approximately $14.48 billion in assets are "currently invested in financial products based on MVIS Indices."

CryptoCompare, which was founded in 2014 and is headquartered in London, provides retail and institutional investors with reliable real-time and historical cryptocurrency market data. One way it tries to insure the integrity of its data is by reviewing crypto exchanges on a monthly basis, monitoring for market abuse, and taking regional anomalies and geographical movements into consideration. Two examples of major financial data providers that rely on CryptoCompare are Thomson Reuters and MVIS.

On 6 November 2017, MVIS announced that it had "became the first major index provider to offer digital asset (crypto) indices" via a partnership with CryptoCompare, and said that "MVIS CryptoCompare Indices are the first to meet investment industry benchmarking standards by providing a public rulebook for fork treatments and other events, industry-wide data distribution, proper identifiers and further standard index governance requirements that are expected from a regulated, unaffiliated, major benchmark provider."

Today's joint press release by the two companies says that the MVIS CryptoCompare Institutional Bitcoin Index was designed to "measure the performance of a digital assets portfolio which invests in Bitcoin, priced on select exchanges."

3iQ Corp. ("3iQ"), which was founded in 2012, is "the first Canadian investment fund manager to agree to terms and conditions with the Canadian securities regulatory authorities which permit 3iQ to manage a multi-cryptoasset investment fund available to Canadian accredited investors." It will be using the MVIS CryptoCompare Institutional Bitcoin Index for net asset value (NAV) calculation of "The Bitcoin Fund." 

Thomas Kettner, Managing Director at MVIS, had this to say:

We are pleased to launch this index with our partner CryptoCompare. The index follows our long-term mission in supporting new product developments with the aim of providing investors access to bitcoin.

As for Charles Hayter, CEO and Co-Founder of CryptoCompare, he stated:

Our mission is to bring greater transparency to the digital asset class by providing high quality, trusted data and indices. Together with our partner MVIS, we are excited to offer investors a reliable tool to better measure the performance of their Bitcoin exposure.

Here are the main features of this new index:

  • Full Market Capitalization: $127.61 billion
  • Number of Components: 1
  • Base Date: 31 December 2013
  • Base Value: 100

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