Apr 26, 2024
ETC Group’s unique ‘Tri-NAV’ ETP is underpinned by CF Benchmarks’ regulated Bitcoin Methodology
ETC Group Core Bitcoin’s Tri-NAV offers institutions the choice to transact at our London, New York, or Hong Kong reference rates
BTC1 liquidity spans three time zones
CF Benchmarks is proud to support ETC Group in the launch of its ETC Group Core Bitcoin ETP (ticker: BTC1). The ETP has just been listed on Frankfurt’s Deutsche Börse XETRA market, becoming the first Bitcoin ETP with a fully transparent, regulated ‘Tri-NAV’ methodology.
BTC1 is underpinned by CF Benchmarks’ Bitcoin pricing methodology, deploying all three variants of our flagship CME CF Bitcoin Reference Rate (BRR) in one product simultaneously, for the first time.
This means ETC Group Core Bitcoin ETP’s unique ‘Tri-NAV’ methodology encompasses BRR, as well our CME CF Bitcoin Reference Rate – New York Variant (BRRNY), and our CME CF Bitcoin Reference Rate Asia Pacific Variant (BRRAP).
Together, these reference prices enable three potential windows for institutions to transact BTC1, at the same price as the fund’s authorized participants and market makers undertake creations and redemptions, paving the way for the highest possible operating cost efficiency and tracking.
Inside BRR, BRRNY and BRRAP
As their names suggest, BRRNY and BRRAP are designed to synchronise with traditional New York market hours, and the key Asia Pacific trading times of Hong Kong and Singapore, respectively. As such, whilst BRR references the price of Bitcoin at 4 PM London Time, BRRNY references the BTC price at 4PM New York Time, and BRRAP marks our benchmark Bitcoin price at 4 PM in the Hong Kong and Singapore Time Zone.
Regulated, proven liquidity and integrity
BRR, BRRNY and BRRAP are all officially recognized as Regulated Benchmarks under the UK Benchmarks Regulation (UK BMR) framework, and are published and administered by CF Benchmarks, the first UK FCA registered cryptocurrency Benchmarks Administrator.
The initial variant of our Bitcoin benchmark, the CME CF Bitcoin Reference Rate, has been continuously calculated since November 2016.
It is demonstrably the most liquid institutional Bitcoin price, referenced by billions of dollars' worth of our clients' exchange traded and OTC products, and having settled over $1 trillion of the CME Group’s CFTC-regulated bitcoin options and futures contracts, since 2017.
Furthermore, our Bitcoin pricing methodology is also corroborated by the most public research of any institutional Bitcoin price. The representativeness, replicability (i.e., liquidity, or ability to be transacted), and manipulation-resistance of our methodology have been demonstrated in several separate pieces of quantitative research published by CF Benchmarks.
All in all, the BRR, BRRNY and BRRAP, which constitute ETC Group Core Bitcoin ETP’s Tri-NAV, provide institutional investors in BTC1 with the widest possible window for primary market liquidity, backed by the assurance of the highest possible market integrity, accuracy and reliability.
Find out More
ETC Group Core Bitcoin ETP press release
CF Benchmarks Index Pages
Index research papers
The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell any of the underlying instruments cited including but not limited to cryptoassets, financial instruments or any instruments that reference any index provided by CF Benchmarks Ltd. This communication is not intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. Please contact your financial adviser or professional before making an investment decision.
Note: Some of the underlying instruments cited within this material may be restricted to certain customer categories in certain jurisdictions.
Gabriel Selby
CF Benchmarks
