The New York Stock Exchange (NYSE) has teamed up with Coindesk Indices to develop cash-settled options contracts that track bitcoin prices. These contracts, based on the Coindesk Bitcoin Price Index (XBX), are currently in the planning stage and awaiting regulatory approval.
NYSE Partners With Coindesk for Bitcoin-Tracking Financial Products
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NYSE and Coindesk Indices Forge New Path With Bitcoin Options Contracts
The proposed New York Stock Exchange (NYSE: ICE) and Coindesk collaboration aims to harness XBX, the longest-operating spot bitcoin index, which is the benchmark for $20 billion in exchange-traded fund (ETF) assets under management (AUM). The index represents the real-time spot price of bitcoin (BTC), denominated in U.S. dollars, and is calculated across various cryptocurrency exchanges every second of the day.
“As traditional institutions and everyday investors are demonstrating their wide-ranging enthusiasm for the recent approval of spot bitcoin ETFs, the New York Stock Exchange is excited to announce its collaboration with Coindesk Indices,” said Jon Herrick, the chief product officer at NYSE. “Upon regulatory approval, these options contracts will offer investors access to an important liquid and transparent risk-management tool,” the NYSE executive added.
Last year, similar collaborations saw the launch of updated bitcoin futures contracts by ICE Futures Singapore. The NYSE, an entity under Intercontinental Exchange, Inc., emphasized during the announcement that these new products will provide essential risk management tools for investors in a transparent manner. This initiative, the company explained, marks a continuation of NYSE’s adaptation to digital asset trends, reflecting growing institutional interest in cryptocurrencies.
What do you think about NYSE collaborating with Coinbase Indices? Let us know what you think in the comments section below.
