New York Stock ExchangeNYSE( ) announced Plans to launch financial product tied to Bitcoin’s spot price. The NYSE has partnered with CoinDesk Indices in order to launch cash-settled Index Options that track the CoinDesk Bitcoin Price Index.
BREAKING: 🇺🇸 New York Stock Exchange to launch financial products tracking spot #Bitcoin prices. pic.twitter.com/mhPECUZAsW
— Bitcoin Magazine (@BitcoinMagazine) May 29, 2024
The XBX index is a spot Bitcoin price calculated by major cryptocurrency exchanges. This index has operated for 10 years now and currently represents $20 billion in cryptocurrency. Bitcoin ETF assets.
The NYSE aims at providing investors with a tool for managing risk by developing option contracts based upon the XBX. Bitcoin’s popularity continues to grow. Products would need to be approved by regulators.
Jon Herrick Chief product officer at NYSE said the new contracts offer investors greater flexibility. “access to an important liquid and transparent risk-management tool” Bitcoins are in great demand.
This collaboration will bring another traditional financial player to Bitcoin. The NYSE stated that it shows the “wide-ranging enthusiasm” Recent spot bitcoin ETF approvals have attracted institutional investors to this asset class.
The current situation is that CME Other mainstream institutions also sell Bitcoin derivatives. The NYSE joining the Bitcoin mix adds more credibility, and indicates a growing acceptance of Bitcoin within traditional finance circles.
The NYSE’s market capitalization of $25 trillion gives the NYSE a huge reach, influence and distribution. The NYSE’s entry into Bitcoin derivatives and indexing reflects that asset class becoming more mainstream by 2024.
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Source: bitcoinmagazine.com
