New York Stock Exchange (New York Stock Exchange) I have Announced The NYSE plans to launch a financial product linked to the spot price of Bitcoin. The NYSE has partnered with CoinDesk Indices to develop a cash-settled index option that tracks the CoinDesk Bitcoin Price Index (XBX).
BREAKING: 🇺🇸 New York Stock Exchange launches Financial Instruments Tracking Spot #Bitcoin price. pic.twitter.com/mhPECUZAsW
— Bitcoin Magazine (@BitcoinMagazine) May 29, 2024
XBX is a real-time Bitcoin spot price index calculated by major cryptocurrency exchanges. It has been in operation for over 10 years and currently serves as the benchmark for $20 billion worth of Bitcoin. Bitcoin ETFs assets.
By developing options contracts based on XBX, the NYSE aims to give investors a new tool to manage risk amid growing interest in Bitcoin. The product is subject to regulatory approval.
NYSE Chief Product Officer John Herrick said that these new options contracts will give investors “access to critical liquidity and a transparent risk management tool” as demand for Bitcoin soars.
The partnership marks the entry of another major traditional financial player into bitcoin, and the NYSE said it signals the “broad enthusiasm” that the recent approval of a spot bitcoin ETF is drawing institutional investors to the asset class.
the current, CME A handful of other mainstream firms offer bitcoin derivative products, with the NYSE’s inclusion adding credibility and signaling bitcoin’s growing acceptance within the traditional financial world.
With a market capitalization of $25 trillion, the NYSE has extensive reach, distribution and influence. Bitcoin’s entry into indexes and derivatives reflects the asset class’s increasing mainstream adoption in 2024.
