- 31 March 2022
- Posted by: Cryptovalues
- Category: Companies, Cryptovalues News, exchange, Fiscal
Cryptofixing, the Italian index that sets a unique price for bitcoin, is born.
The Italian Cryptovalues consortium launched the index, 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.
The service to determine the unique daily reference price for bitcoin and, in perspective, for each of the main cryptocurrencies will be called Cryptofixing. 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 methodology of fixing, which consists of 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 which also has applications for the retail investor.
A unique price that brings bitcoin closer to the traditional business world
Cryptofixing sets 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 UTC the average of the “bid (/bid)” and “ask (/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.
Then, 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 made to obtain the fixing.
How the fixing comes about (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 specialising 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 can fixing be used for in the bitcoin world?
The introduction of Cryptofixing responds to several needs, first and foremost for all those who need to determine the Net Asset Value (N.A.V.): decisive to assess 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.
“Through Cryptofixing we are providing, for the first time, the institutional and professional investor, 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,” says Federica Rocco, CEO of Cryptovalues.
“Cryptofixing offers an innovative tool for those who operate, or would like to operate, with cryptocurrencies, but feel the need to have a benchmark obtained by averaging the fluctuations and differences in prices between the various exchanges.
Download: Comunicato Stampa _Nasce Cryptofixing en