The New York Stock Exchange (NYSE) has Announce It plans to launch financial products linked to the spot price of Bitcoin. The New York Stock Exchange is partnering with CoinDesk Indices to develop cash settlement index options that will track the CoinDesk Bitcoin (XBX) price index.
Urgent: 🇺🇸 The New York Stock Exchange launches a point to track financial products #Bitcoin the prices. pic.twitter.com/mhPECUZAsW
– Bitcoin Magazine (@BitcoinMagazine) May 29, 2024
XBX is a Bitcoin spot price index calculated across major cryptocurrency exchanges. It has been in operation for over 10 years and is currently the benchmark for $20 billion worth of Bitcoin ETF assets.
By developing options contracts based on XBX, the NYSE aims to provide investors with a new risk management tool as interest in Bitcoin continues to grow. The products will be subject to regulatory approval.
John Herrick, chief product officer at the New York Stock Exchange, said that these new options contracts will give investors “access to an important liquid and transparent risk management tool” amid the growing demand for Bitcoin.
This collaboration brings another major traditional financial player to Bitcoin. The New York Stock Exchange said it shows “broad-based enthusiasm” for the recent approvals of bitcoin ETFs, which is attracting institutions to the asset class.
Currently, the Chicago Mercantile Exchange and a few other major entities offer Bitcoin derivatives products. The entry of the New York Stock Exchange into the mix provides additional credibility and signals the growing acceptance of Bitcoin in traditional finance circles.
With $25 trillion in market capitalization, the NYSE brings a broad range of reach, distribution and influence to the table. Its entry into indexing Bitcoin and its derivatives reflects an asset class that will become increasingly mainstream in 2024.