NYSE launches spot Bitcoin price tracking product
The New York Stock Exchange (NYSE) announced plans to launch financial products linked to the Bitcoin spot price. The NYSE is working with CoinDesk Indices to develop a cash-settled index option that tracks the CoinDesk Bitcoin Price Index (XBX).
BREAKING NEWS: 🇺🇸 New York Stock Exchange Launches Financial Instrument Tracking Branch #Bitcoin price. pic.twitter.com/mhPECUZAsW
— Bitcoin Magazine (@BitcoinMagazine) May 29, 2024
XBX is a real-time spot price index for Bitcoin calculated on major cryptocurrency exchanges. It is the benchmark for Bitcoin ETF assets, which have been in operation for over 10 years and are currently worth $20 billion.
By developing options contracts based on XBX, NYSE aims to provide investors with new tools to manage risk as interest in Bitcoin continues to grow. The product is subject to regulatory approval.
NYSE Chief Product Officer Jon Herrick said that amid surging demand for Bitcoin, these new options contracts will give investors access to “an important risk management tool that is liquid and transparent.”
This collaboration brings another major traditional financial entity to Bitcoin. The NYSE said the recent approval of a spot Bitcoin ETF shows “broad enthusiasm” about attracting institutions to the asset class.
Currently, CME and a few other mainstream companies offer Bitcoin derivatives. NYSE joining the mix provides additional credibility and signals Bitcoin’s growing acceptance within the traditional financial world.
Boasting a market capitalization of $25 trillion, the NYSE brings extensive reach, distribution and influence to the table. Entry into Bitcoin indexing and derivatives reflects that the asset class will become increasingly mainstream in 2024.
