The New York Stock Exchange (NYSE) and Coindesk Indices have joined forces to create cash-settled options contracts that will track the price of bitcoin. These contracts, which will be based on the Coindesk Bitcoin Price Index (XBX), are currently in the early planning stages and are awaiting approval from regulators.
The collaboration between NYSE and Coindesk aims to utilize XBX, the longest-running spot bitcoin index that serves as the benchmark for $20 billion worth of assets under management in exchange-traded funds (ETFs). The index provides real-time updates on the spot price of bitcoin in US dollars, and it is calculated based on data from various cryptocurrency exchanges every second.
Jon Herrick, the chief product officer at NYSE, expressed his excitement about the collaboration, stating that as traditional institutions and everyday investors show their enthusiasm for spot bitcoin ETFs, the NYSE is pleased to announce its partnership with Coindesk Indices. Once these options contracts receive regulatory approval, they will provide investors with a liquid and transparent risk-management tool, according to Herrick.
Last year, ICE Futures Singapore launched updated bitcoin futures contracts through similar collaborations. NYSE, which is a subsidiary of Intercontinental Exchange, Inc., highlighted that these new products will offer investors important risk management tools in a transparent manner. The company explained that this initiative is part of NYSE's ongoing adaptation to digital asset trends and reflects the increasing interest in cryptocurrencies by institutional investors.
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