On Thursday (July 1), MV Index Solutions GmbH (MVIS®) in partnership with CryptoCompare, a leading provider of digital asset data, announced the launch of institutional-grade price indices for three of today’s most popular cryptoassets: Polkadot (DOT) Solana (SOL), and TRON (TRX).
These three products are the MVIS CryptoCompare Polkadot VWAP Close Index (ticker:MVDOTV), MVIS CryptoCompare Solana VWAP Close Index (ticker: MVSOLV), and the MVIS CryptoCompare TRON VWAP Close Index (ticker: MVTRXV).
These three indices are designed to measure the performance of the respective digital assets — DOT, SOL, and TRX — with a closing value based on an hourly Volume Weighted Average Price (VWAP).
The volume weighted average price (VWAP) is “a trading benchmark used by traders that gives the average price a security has traded at throughout the day, based on both volumeand price,” and it is important because “it provides traders with insight into both the trend and value of a security.”
As the Digital Assets FAQs page on the MVIS website explains, “pricing is provided by CryptoCompare from a global list of 50+ exchanges. The index uses a special exchange liquidity based pricing mechanism for each asset and each exchange to ensure fair price discovery and representation globally.” This pricing source is “designed to be reliable in a market that is otherwise prone to DDOS attacks, hacking, and unstable technological and legal environment.”
According to the joint press release by the two firms, Thomas Kettner, COO of MV Index Solutions, had this to say:
“MVIS is happy to launch these additional indices based on our VWAP methodology. They are a complement to our respective Bitcoin and Ethereum indices already underlying ETNs traded in Europe.“
And Charles Hayter, CEO and Co-Founder of CryptoCompare, stated:
“We are delighted to provide market participants with three more transparent benchmarks that measure the performance of some of the most popular digital assets. These new additions to the MVIS CryptoCompare index family further address the growing demand for regulated digital asset investment products.“
On June 17, The Block reported that MVIS, which is a wholly-owned subsidiary of global investment manager VanEck, had made a strategic investment in CryptoCompare.
Jan F. van Eck, the President and CEO of Van Eck Associates Corporation, had this to say at the time:
“We are seeking to partner with leading firms in digital assets and blockchain technology and are happy to deepen that relationship by investing, when appropriate.“
According to The Block’s report, the rapidly growing London-based crypto startup “has been working closely with MVIS on crypto index products since 2017, when it launched the MVIS CryptoCompare Digital Assets 100 Index,” which “tracks the performance of the 100 largest digital assets and serves as a benchmark for other crypto indices.”
MVIS-CryptoCompare’s family of highly trusted institutional-grade digital asset indices make it possible for companies such as Canadian investment fund manager 3iQ Corp. to create crypto exchange-traded products (ETPs), which are of great interest to both institutional and retail investors.