MVIS CryptoCompare Bitcoin Index licensed to VSFG/Arrano Capital for Hong Kong regulated fund

MV Index Solutions (MVIS) in partnership with CryptoCompare, a specialist in digital asset data, has licensed 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, 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,” says 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, says: “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.”