Bitcoin
NYSE Plans Bitcoin Options in Collaboration with CoinDesk, Bringing Another TradFi Giant into Crypto
The New York Stock Exchange plans to list index options that track the price of bitcoin (BTC)bringing another traditional financial giant into the cryptocurrency space.
Cash-settled derivatives will track the CoinDesk Bitcoin Price Index (XBX), a 10-year benchmark operated by this news organization’s corporate sister, CoinDesk Indices. XBX is currently the benchmark for $20 billion in exchange-traded fund assets under management, according to Wednesday’s paper. Press release announcing the partnership.
“As traditional institutions and everyday investors demonstrate their widespread enthusiasm for the recent approval of spot bitcoin ETFs, the New York Stock Exchange is pleased to announce its collaboration with CoinDesk Indexes,” said NYSE Chief Product Officer , Jon Herrick, in the statement. “Upon regulatory approval, these options contracts will offer investors access to an important, liquid and transparent risk management tool.”
Bitcoin derivatives helped pave the way for this year’s introduction of spot bitcoin ETFs, which turned into one of the most successful ETF launches in history. The NYSE is owned by Intercontinental Exchange, which competes with the CME Group – whose bitcoin futures are widely held in the industry. The NYSE’s entry into the game provides another TradFi-friendly access to crypto.
In 2023, Intercontinental Exchange’s ICE Futures Singapore collaborated with CoinDesk Indices to use XBX for monthly contract settlement for CoinDesk Bitcoin Futures in that country.