Coindesk Indices and the New York Stock Exchange (NYSE) have joined forces to create cash-settled options contracts that monitor the price of bitcoin. These contracts, which are currently in the planning phase and awaiting regulatory approval, will be based on the Coindesk Bitcoin Price Index (XBX).
The NYSE and Coindesk aim to utilize XBX, the longest-operating spot bitcoin index, which serves as the benchmark for $20 billion worth of assets under management (AUM) in exchange-traded funds (ETFs). The index provides the real-time spot price of bitcoin in U.S. dollars and is calculated across multiple cryptocurrency exchanges every second.
Jon Herrick, the chief product officer at NYSE, expressed the exchange’s excitement about the collaboration with Coindesk Indices. He stated that once regulatory approval is obtained, these options contracts will offer investors a liquid and transparent risk management tool.
In a similar vein, ICE Futures Singapore launched updated bitcoin futures contracts last year through collaborations of this nature. The NYSE, as part of Intercontinental Exchange, Inc., highlighted that these new products will provide crucial risk management tools for investors in a transparent manner. This initiative demonstrates NYSE’s adaptation to digital asset trends and reflects the increasing institutional interest in cryptocurrencies.
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