New York Stock ExchangeNYSE( ) announced Plan to launch financial Products tied to Bitcoin’s spot price. The NYSE and CoinDesk Indices are collaborating to create cash-settled options for the CoinDesk Bitcoin Price Index.
BREAKING: 🇺🇸 New York Stock Exchange to launch financial Tracking spot for products #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 and Jon Herrick’s statement on the new option contracts said that these options contracts would give investors a better way to invest. “access to an important liquid and transparent risk-management tool” Bitcoin is in high demand.
This collaboration will bring another traditional financial player to Bitcoin. According to the NYSE, it is a sign of Bitcoin’s increasing popularity. “wide-ranging enthusiasm” Recent spot bitcoin ETF approvals have attracted institutional investors to this asset class.
Current, there are two types of CME A few other mainstream companies also offer Bitcoin derivatives. The NYSE joining the Bitcoin mix adds more credibility, and indicates a growing acceptance of Bitcoin within traditional finance circles.
With a $25 trillion market capitalization the NYSE is able to reach a wide audience, distribute widely and have sway. 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