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NYSE to Launch Bitcoin Index Options Tracking XBX Index
The New York Stock Exchange (NYSE) plans to list Bitcoin index options, opening a new chapter in the integration of traditional finance into the crypto space. These cash-settled derivatives will track the CoinDesk Bitcoin Price Index, commonly known as XBX. Currently, XBX supports $20 billion in exchange-traded fund (ETF) assets under management.
According to NYSE Chief Product Officer Jon Herrick, the collaboration with CoinDesk Indices aims to meet the growing demand from institutional and retail investors for various Bitcoin investment products.
Herrick emphasized that once approved by regulatory authorities, these options contracts will offer a crucial, liquid and transparent risk management tool. This development follows the recent approval of spot Bitcoin ETFs, which have attracted major investor interest.
NYSE partners with CoinDesk to launch #Bitcoin Hint Options! 📈
🔹NYSE is collaborating with CoinDesk Indices to offer cash-settled options tracking the CoinDesk Bitcoin Price Index (XBX).
🔹XBX is the benchmark for $20 billion in ETF assets, tracked in real time $BTC prices.
🔹NYSE and… pic.twitter.com/TNTghFIMIP
– Financial Summit (@FinSummit) May 29, 2024
TradFi integration with Crypto
The New York Stock Exchange (NYSE), owned by the Intercontinental Exchange (ICE), is already involved in the cryptocurrency markets. Last year, ICE Futures Singapore partnered with CoinDesk Indices to use the XBX Index to settle its monthly contracts in CoinDesk Bitcoin Futures.
Its entry into Bitcoin options introduced another player into the competitive space, particularly against the already dominant CME Group, which established its foundation with its Bitcoin futures contracts.
This latest move from the NYSE shows that the crypto space is slowly and steadily being integrated into traditional markets, providing more opportunities for risk management and expanding investment opportunities.
Read also: BlackRock’s ETF is now the world’s largest Bitcoin fund