Sign in Subscribe
Announcement Featured

ETC Group’s unique ‘Tri-NAV’ ETP is underpinned by CF Benchmarks’ regulated Bitcoin Methodology

ETC Group Core Bitcoin ETP (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.

Ken Odeluga

• 2 min read
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.

CF Benchmarks Ltd (“CF Benchmarks”), a company registered in England and Wales with company number 11654816 and authorised and regulated by the Financial Conduct Authority. Information about us can be found on the Financial Services Register (register number 847100).

Registered Office: 6th Floor One London Wall, London, United Kingdom, EC2Y 5EB.

You agree not to, and have no rights to, use the CF Benchmarks Data to create, calculate, issue, settle, maintain, support or develop any financial instruments (including but, without limitation exchange traded products, certificates, warrants, contracts for difference, swaps, binary options, structured products), indices, products, services (including but without limitation, portfolio management services, pre- and post-trade risk management services, or valuation services) or any other derivative works without the express written consent of CF Benchmarrks.

You agree not to analyze, reverse-engineer or disassemble any CF Benchmarks data and not to insert any code or product to manipulate the Website content in any way that affects any user’s experience. Unless CF Benchmarks gives you prior written permission, use of any Web browsers (other than generally available third-party browsers), engines, scripts, software, spiders, robots, avatars, agents, tools or other devices or mechanisms (such as crawlers, browser plug-ins and add-ons, or other technology) to navigate, access, copy in bulk, retrieve, harvest, index, search or analyse any portion of the Website is strictly prohibited.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of CF Benchmarks Ltd. Use and distribution of the CF Benchmarks data requires a license from CF Benchmarks or its authorized licensing agents.

All information is provided for information purposes only. All information and data contained on this website is obtained by CF Benchmarks, from sources believed by it to be accurate and reliable. Such information and data is provided "as is" without warranty of any kind.

CF Benchmarks, nor its directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or implied, either as to the accuracy, timeliness, completeness or merchantability of any information or of results to be obtained from the use of the CF Benchmarks indices or the fitness or suitability of the same indices for any particular purpose to which they might be put. Any representation of historical data accessible through CF Benchmarks indices is provided for information purposes only and is not a reliable indicator of future performance.

No responsibility or liability can be accepted by CF Benchmarks nor their respective directors, officers, employees, partners or licensors for any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing, editing, transcribing, transmitting, communicating or delivering any such information or data or from use of this website or links to this website.

CF Benchmarks and its respective directors, officers, employees, partners or licensors do not provide investment advice and nothing accessible through CF Benchmarks, should be taken as constituting financial or investment advice or a financial promotion. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of any assets.

CF Benchmarks is a member of the Crypto Facilities group of companies which is in turn a member of the Payward, Inc. group of companies. Payward, Inc. is the owner and operator of the Kraken Exchange, a venue that facilitates the trading of cryptocurrencies. The Kraken Exchange is a source of input data for certain CF Benchmarks indices. Payward, Inc. is the owner and operator of the Staked, a venue that operates the block production nodes for decentralized PoS protocols on behalf of institutional investors. Staked.us is a source of input data for certain CF Benchmarks indices.

Please refer to the individual product family documentation for more information about applicable input data sources.