The New York Stock Exchange (NYSE) has partnered with
CoinDesk to track spot Bitcoin
prices. This collaboration aims to bridge traditional finance with
cryptocurrency and offer investors ways to engage with digital assets. The partnership involves cash-settled index options tracking the CoinDesk Bitcoin Price Index (XBX).
Introducing Bitcoin Index Options
Jon Herrick, the Chief Product Officer of the New York
Stock Exchange, mentioned: “As traditional institutions and everyday
investors are demonstrating their wide-ranging enthusiasm for the recent
approval of spot bitcoin ETFs, the New York Stock Exchange is excited to
announce its collaboration with CoinDesk Indices. Upon regulatory approval,
these options contracts will offer investors access to an important liquid and
transparent risk-management tool.”
Options contracts tied to the XBX enable investors to access an avenue for managing risk and exposure
to Bitcoin’s price movements. While the development of these options contracts
is underway, they are subject to regulatory approvals. It aims to ensure
compliance with relevant laws and regulations.
XBX is a benchmark for tracking Bitcoin’s spot price.
With approximately $20 billion in ETF assets under management tied to XBX, the
benchmark shows Bitcoin’s value in real-time across various cryptocurrency
exchanges. Its continuous calculation and publication occur once per second.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
