- The index was launched by the Italian consortium Cryptovalues, which has taken an important step towards bringing the crypto world and traditional financial activities closer together.
- The index, dedicated to institutional investors but also available to retail investors, is based on the fixing methodology, the same one used for over a century to establish the price of gold.
- Bitpanda, Bitstamp, Cex.io, Coinbase, Kraken and The Rock Trading will be the exchanges used to calculate the price.
Milan, 1 April 2022 – Cryptofixing will be the name of the service used to determine the unique daily reference price for Bitcoin and, eventually, for each of the main cryptocurrencies. It is an all-Italian project – launched by Cryptovalues, the consortium created to act as a bridge between crypto-assets and institutions – and will be based on the fixing methodology, which consists in calculating the average of the values recorded on the main markets where the asset is traded.
Cryptovalues is the first initiative that is aimed at professional and institutional investors, but it also has applications for retail investors.
A unique price that brings Bitcoin closer to the traditional business world
Cryptofixing determines the fixing of Bitcoin every day. The methodology adopted by Cryptovalues to establish a definitive daily value to refer to, Cryptofixing, involves checking at 00:00 AM UTC the average of the “bid” and “ask” values for each of the 6 reference exchanges: Bitpanda, Bitstamp, Cex.io, Coinbase, Kraken and The Rock Trading. These exchanges were chosen for the presence of the BTC/EUR exchange pair and for compliance with anti-money laundering regulations and European legislative standards: this list is subject to change to ensure that the fixing is as reliable and accurate as possible.
Subsequently, from the 6 data taken from the exchanges, the data with the highest value and the one with the lowest value will be expunged and then the average of the 4 remaining data will be carried out to obtain the fixing.
How the fixing was born (from physical gold to virtual gold)
The price of gold with the fixing was established for the first time on 12 September 1919 by the five founding members of the London Gold Market: they were the five largest bullion dealers and bankers specializing in the yellow metal. NM Rothschild & Sons presided over the five for a long time, while the other members of the initial group – which changed over the years – were Mocatta & Goldsmid, Samuel Montagu & Co, Pixley & Abell and Sharps & Wilkins.
Gold fixing was carried out twice a day (10:30 AM, 03:00 PM London time) in dollars, euros and pounds sterling by the five members based on the prices they had actually experienced in the markets. Since 2015, the task has passed to the London Bullion Market Association (Lbma), in which 15 accredited parties participate.
The price set by the Lbma is used in global financial centres as a benchmark for gold derivative contracts (futures, options) and in trading in physical gold. The methodology was later extended to silver, Euribor and fiat currencies.
What practical uses can fixing have in the Bitcoin world?
The introduction of Cryptofixing meets numerous needs, first and foremost for all those who need to determine the Net Asset Value (N.A.V.): decisive for assessing the overall performance of the underlying.
It is also an important tool from a tax point of view for completing tax returns and calculating any capital gains.
Federica Rocco, CEO of CryptoValues, declares:
“Through Cryptofixing, for the first time ever, we are equipping institutional and professional investors, as well as the retail public, with an element of certainty in order to generate confidence based on objective criteria. We offer a reference value that can be compared by different players in the crypto sector, but also by players in traditional finance, Cryptofixing offers an innovative tool for those who work or would like to work with cryptocurrencies, but feel the need to have a benchmark obtained by averaging the fluctuations and differences in prices between the various exchanges”.
The extreme innovation and complexity of the blockchain, both technologically and socio-culturally, expose this industry to the risk of being nipped in the bud by excessive and inappropriate regulation based on biased assessments. The CryptoValues consortium was founded in Milan in 2018 to respond to these needs, bringing together figures specialized in the legal, tax, industrial and technological fields to promote interdisciplinary dialogue between all participants, both at the Italian and European levels. The main areas of activity of the consortium are: research and development, training, academic and institutional relations.
For further information: www.cryptovalues.eu – [email protected]
Contacts The Rock Trading – Press office ddl studio
Irene Longhin – [email protected] – 0039 329 7816778
Sabrina Barozzi – [email protected] – 0039 333 6158644