HomeNewsCryptofixing is the Italian index for cryptocurrencies and bitcoin 18 April 2022 Blockchain DLT, News Debuts Cryptofixing, the Italian index that determines a unique price for cryptocurrencies and bitcoins. The initiative is aimed at professional and institutional investorsbut it also boasts applications in the field retail. Here’s how it works.
Cryptofixing, the Italian index for cryptocurrencies and bitcoin
Cryptovalues, the Italian crypto and bitcoin consortium, seeks to bring the world of crypto closer to that of traditional financial activities. And it does, by launching Cryptofixing which sets a unique price for cryptocurrencies and bitcoins. In fact, Cryptofixing is the service that: helps to define the unique daily reference price for bitcoin; intends to become the index for each of the most important cryptocurrencies. Furthermore, the project is made in Italy and intends build a bridge between crypto assets and institutions.
The Italian Cryptovalues project: the details
The Italian crypto index adopts a fixing methodology, which consists in calculating the average of the values recorded in the main markets where operators trade the asset. Cryptofixing fixes bitcoin fixing every day. Cryptovalues, to establish a definitive daily value as a reference, uses Cryptofixing. The method involves: checking the average of the “bid (/ bid)” and “ask (/ ask)” values at 00.00 UTC; collect data for each of the six reference exchanges (Bitpanda, Bitstamp, Cex.io, Coinbase, Kraken e The Rock Trading); from the 6 data obtained, it eliminates the data with the upper and lower values, to calculate the average of the 4 remaining data and determine the fixing. The stages of mining: setting a goal and cryptocurrency. Find out more Cryptovalues has chosen these exchanges for the following reasons: presence of the BTC / EUR exchange pair; compliance with anti-money laundering regulations and European legislative standards. In fact, the list could be modified to ensure that the fixing is the most accurate and timely.
A century of physical gold fixing
The methodology is inspired by the fixing of the physical gold price. For the first time on September 12, 1919, five founding members of the London Gold Market (Rothschild & Sons, Mocatta & Goldsmid, Samuel Montagu & Co, Pixley & Abell and Sharps & Wilkins), the largest bullion dealers and bankers specializing in gold, set the price of gold with the fixing. Twice a day (at 10.30 in the morning, at 03.00 in the afternoon, London time), the five members fixed the gold in dollars, euros and pounds on the basis of real prices in the markets. Since 2015 they have been appointed to the London Bullion Market Association (Lbma), which involves 15 accredited entities. Lbma sets a price that acts as a benchmark in global financial markets, for derivative contracts on gold (futures and options) and in the trading of physical gold. The methodology is also applied to silver, Euribor and fiat currencies.
The practical uses of the index in the cryptocurrency and bitcoin world
Cryptofixing serves to fix the Net Asset Value (NAV), which is decisive for assessing the overall return of the underlying. It is also an important tool from a tax point of view to fill in the tax return and calculate any capital gains. “Through Cryptofixing we provide, for the first time to the institutional and professional investor, as well as to a retail audience, an element of certainty in order to generate trust on the basis of objective criteria. We offer a reference value that can be compared by different operators in the crypto sector, but also by actors of traditional finance “, comments Federica Rocco, CEO of Cryptovalues. “By determining a unique daily quotation, defined with a rigorous and balanced methodology that verifies its performance on authoritative exchanges, Cryptofixing offers an innovative tool available to those who operate, or would like to operate with cryptocurrencies, but feel the need to have a parameter reference obtained by averaging the fluctuations and differences in prices between the various exchanges “.