NYSE and CoinDesk to launch option contracts based on the XBX bitcoin index

The products have not yet received approval from US regulators

29.05.2024 - 14:27

2 min

What’s new? The New York Stock Exchange (NYSE) has announced a partnership with a subsidiary provider of the cryptocurrency indices of the CoinDesk media company. The parties will jointly launch option contracts tied to the CoinDesk Bitcoin Price Index (XBX). XBX is the oldest spot bitcoin index and new products based on it will be settled in cash.

Press release

What else is known? The NYSE and CoinDesk Indices intend to cooperate with regulators in the development of the new options contracts. According to NYSE Chief Product Officer John Herrick, the contracts will give investors access to an important liquid and transparent risk management tool.

XBX is already used by several cryptocurrency exchange-traded funds (ETFs), collectively managing $20 billion in assets. The index, launched in 2014, tracks the spot price of bitcoin, denominated in US dollars, in real time across multiple crypto exchanges. It is calculated and published once per second without interruption, 24 hours a day, 365 days a year.

The NYSE noted the growing interest of traditional financial sector institutions in the digital asset market following the approval of spot bitcoin-ETFs in January this year.

Late last year, crypto exchange Bullish, led by former NYSE president Tom Farley, fully bought out CoinDesk and its divisions, formerly part of Barry Silbert’s Digital Currency Group (DCG) conglomerate.