Index to underlie Hong Kong´s first regulated Bitcoin Fund
Frankfurt (16 July 2020) – Today, MV Index Solutions GmbH (MVIS®) in partnership with CryptoCompare, the global leader in digital asset data, announced the licensing of the MVIS CryptoCompare Bitcoin Index (MVBTC) to Arrano Capital, the blockchain arm of Venture Smart Asia Limited, for its recently launched Bitcoin fund. The fund, which tracks the price of Bitcoin, uniquely features daily subscription and redemptions, offering investors greater ease of access, security and liquidity. Available only to institutional and professional investors, the fund aims to bridge the gap between regulated finance and the digital asset industry.
With the inherent complexity and risk of blockchain investment operations, complicating factors such as safe custodianship, accurate net asset value reporting, trade execution and settlement across a multitude of cryptocurrency exchanges, often make it prohibitive for institutions to invest in the asset class themselves.
“We are pleased that our Digital Asset Indices continue to be popular and that we are now also the underlying index or Hong Kong’s first regulated cryptocurrency fund.” said Thomas Kettner, Managing Director at MV Index Solutions. “This will help to strengthen the status of digital assets as an asset class and fulfils the needs of institutional investors.”
This licensing is part of a broader push to bring institutional grade fund products to investors looking to gain exposure to bitcoin and the cryptocurrency asset class. Family offices, endowments, pensions, hedge funds, and other asset managers are interested in this new asset class as an inflation hedge or simply as an early stage asset class with long term growth potential. The asset class has the additional benefit of being uncorrelated with traditional financial assets, which enhances risk-adjusted returns.
“Our Bitcoin fund targets institutional investors and therefore it is important to partner with a recognised index pricing provider.Not only is MVIS extremely well regarded, the company has an innovative approach which suits digital assets, combined with the track record to develop indices that are licensed to underlie many exchange traded funds (ETFs).” explains Avaneesh Acquilla , Chief Investment Officer at Arrano Capital.
Charles Hayter, CEO and Co-Founder of CryptoCompare, commented: “We are delighted to work with our partners to help bring this institutional-grade product to investors looking to gain exposure to Bitcoin. With the launch of their fully regulated Bitcoin fund, VSFG and Arrano Capital will help further the adoption of digital assets that fulfil the needs of institutional investors.”
MVIS CryptoCompare Bitcoin Index (MVBTC) launched on 23 October 2017 is a rules based index,intended to give investors a means of tracking the performance of a Bitcoin digital asset. Detailed information about the MVIS CryptoCompare Bitcoin Index (MVBTC)including methodology details and index data are available on the MV Index Solutions website.
Key Index Features
Full Market Capitalisation (bn USD): 169.89
Number of Components: 1
Base Date/Base Value: 31.01.2012/10
(Data as of 15 July 2020)
MV Index Solutions
Séverine Thäsler-Jäger, MV Index Solutions
+49 (0)69 4056 695 53
About MV Index Solution - www.mvis-indices.com
MV Index Solutions (MVIS®) develops, monitors and licenses the MVIS Indices, a selection of focused, investable and diversified benchmark indices. The indices are especially designed to underlie financial products. MVIS Indices cover several asset classes, including equity, fixed income markets and digital assets and are licensed to serve as underlying indices for financial products. Approximately USD 15.69 billion in assets under management (as of 15 July 2020) are currently invested in financial products based on MVIS Indices. MVIS is a VanEck company.
About CryptoCompare - https://data.cryptocompare.com
CryptoCompareis the global leader in digital asset data. Institutional and retail investors rely on the company for real-time, high quality data spanning 3,200+ coins and 150,000+ currency pairs. By aggregating and analysing tick data from globally recognised exchanges and seamlessly integrating multiple datasets, CryptoCompare provides a comprehensive, granular overview of the market across trade, order book, historical, social and blockchain data.
About Arrano Capital and Venture Smart Asia Ltd - www.arranocapital.com
Arrano Capital is the blockchain arm of Venture Smart Asia Limited (VSAL), which is a company incorporated in Hong Kong and whose registered office is at 23/F, Lee Garden Five,18 Hysan Avenue, Causeway Bay, Hong Kong, and is a licensed corporation regulated by the Securities and Futures Commission of Hong Kong for types 1 (dealing insecurities), 4 (advising on securities) and 9 (asset management) regulated activities pursuant to the Securities and Futures Ordinance. VSAL is a member of Venture Smart Financial Group (VSFG). The products mentioned above are available to Professional Investors only (as defined under the Securities and Futures Ordinance).