The New York Stock Exchange plans to list index options tracking the price of Bitcoin (BTC), marking another traditional finance giant's entry into the cryptocurrency industry.
The cash-settled derivative will track the CoinDesk Bitcoin Price Index (XBX), a decade-old benchmark run by the news organization's legal entity, CoinDesk Indices. XBX currently benchmarks $20 billion in exchange-traded fund assets under management, according to a Wednesday press release announcing the partnership.
“The New York Stock Exchange is pleased to announce our partnership with CoinDesk Indices, as traditional institutional and retail investors have shown widespread enthusiasm for the recent approval of spot bitcoin ETFs,” NYSE chief product officer John Herrick said in a statement. “If approved by regulators, these options contracts will provide investors with access to important liquidity and a transparent risk management tool.”
Bitcoin derivatives paved the way for the spot Bitcoin ETF, which was introduced this year and has become one of the most successful ETFs of all time. The NYSE is owned by Intercontinental Exchange, which competes with CME Group, whose bitcoin futures are widely traded in the industry. The NYSE's entry marks another gateway into crypto for TradFi.
In 2023, Intercontinental Exchange's ICE Futures Singapore partnered with CoinDesk Indices to use XBX for monthly contract settlement of CoinDesk Bitcoin Futures in the country.
