The New York Stock Exchange (NYSE) has bitcoin-Prices”>Announced plans to launch financial products linked to the spot price of bitcoin. The NYSE is collaborating with CoinDesk Indices to develop cash-settled index options that will track the CoinDesk bitcoin Price Index (XBX).
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BREAKING NEWS: The New York Stock Exchange will launch a spot tracking financial products twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin prices. pic.twitter.com/mhPECUZAsW
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1795789780610957711?ref_src=twsrc%5Etfw”>May 29, 2024
The XBX is a real-time spot price index for bitcoin calculated on major crypto exchanges. It has been running for over 10 years and is currently the benchmark for $20 billion worth of bitcoin ETF assets.
By developing options contracts based on the XBX, the NYSE aims to provide investors with a new tool to manage risk as interest in bitcoin continues to grow. The products would be subject to regulatory approval.
NYSE Chief Product Officer Jon Herrick said these new options contracts will give investors “access to an important liquid and transparent risk management tool” amid growing demand for bitcoin.
The collaboration brings another major traditional financial player into bitcoin. The NYSE said it shows “broad enthusiasm” for recent bitcoin spot ETF approvals attracting institutions to the asset class.
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Currently, the CME and a handful of other major entities offer bitcoin derivative products. The entry of the New York Stock Exchange into the mix provides additional credibility and signals a growing acceptance of bitcoin in traditional financial circles.
With $25 trillion in market capitalization, the NYSE brings broad reach, distribution and influence. Its entry into bitcoin indexing and derivatives reflects that the asset class will become increasingly common in 2024.
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