Some important OTC banks of Genesis, Cumberland and Circle, which handle a massive amount of OTC encryption, are driving a new trend now, according to Abacus Journal. These companies are opening their OTC books to help markets so that they can better understand price swings in preparation for the ETF.
By opening their OTC books, which is a plan that these companies have been doing for some time, which was discovered when journalists from the Abacus Journal searched on SEC documents, companies are trying to show greater transparency.
This new data feed will likely have an impact on the approval of Bitcoin's ETF next year because, in August, VanEck, which is behind the ETF, said it planned to use OTC prices as part of the ETF price strategy. This makes sense as there is a large amount of Bitcoin trading that is done via the OTC crypto trading.
The SEC filing stated that the initiative was taken to address concerns about the potential for manipulating Bitcoin price in exchanges. If Bitcoin becomes an ETF, the price and sales through the OTC markets should be more transparent and this is what will happen when the ETF is borne by us.
While some people may still have concerns about OTC, data feed and the possibility of manipulation at some level, Abacus Journal said that the scale of data seems to be very robust.
New data feeds to name MV index solutions
It was also reported that MV Index Solutions, which will be the name of the feed, will be launched by the MCI Bitcoin US OTC Spo Index and that this will be the first Bitcoin index based on US price rates from the country's OTC branches.
According to the information, the index will be useful to help users track down Bitcoin's spot price thanks to its performance in Circle Trade, Cumberland and Genesis Trading.
The company plans are to expand the portfolio and make a total of 24 assets to be listed there. The CEO of MV Index Solutions, Thomas Kettner, said he was very excited to be the first supplier to create this data index on these specific OTC branches.
The CEOs and COOs of the companies, including Michael Moro (Genesis Trading), Elisabeth Carpenter (Circle) and Jason Leung (Cumberland), have all said that the new live feed will be very important for the development of the sector.
According to them, if VanEck actually supports this infrastructure, the ETF will most likely be approved and will benefit greatly.
This can also pave the way for more products aimed at institutional investors, even beyond the ETF, so this is an important development in the cryptic world.