May 30, 2024 12:25
The New York Stock Exchange (NYSE) has partnered withCoinDesk to track spot Bitcoinprices. This collaboration aims to bridge traditional finance withcryptocurrency and offer investors ways to engage with digital assets. The partnership involves cash-settled index options tracking the CoinDesk Bitcoin Price Index (XBX).
Introducing Bitcoin Index Options
Jon Herrick, the Chief Product Officer of the NYSE, mentioned: "As traditional institutions and everydayinvestors are demonstrating their wide-ranging enthusiasm for the recentapproval of spot bitcoin ETFs, the New York Stock Exchange is excited toannounce its collaboration with CoinDesk Indices. Upon regulatory approval,these options contracts will offer investors access to an important liquid andtransparent risk-management tool."
Options contracts tied to the XBX enable users to access an avenue for managing risk and exposureto Bitcoin's price movements. While the development of these options contractsis underway, they are subject to regulatory approvals to ensurecompliance with relevant laws and regulations.
Another TradFi giant comes to crypto as the NYSE moves to offer #bitcoin options.@SteveAlpher reportshttps://t.co/vAyQMBJZOP
CoinDesk (@CoinDesk)
May 29, 2024XBX is a benchmark index for tracking Bitcoin's spot prices.With approximately $20 billion in ETF assets under management tied to XBX, theindex shows Bitcoin's value in real-time across various cryptocurrencyexchanges. Its continuous calculation and publication occur once per second.
Towards the end of last year, CoinDesk was acquired by Bullish, a company led by Tom Farley, the Former President of the New YorkStock Exchange. The acquisition positioned the crypto media publication as anautonomous subsidiary within Bullish, safeguarding its identity and editorialoperations while benefiting from financial backing for expansion.
Acquisition by Bullish
Kevin Worth, the CEO of CoinDesk, expressedenthusiasm about the partnership. He emphasized the potential for productdevelopment and expansion in the burgeoning crypto economy. With Bullish'sfinancial backing, CoinDesk said it would capitalize on opportunities in media,events, and indices.
However, amidst the acquisition, CoinDesk'sparent company, Digital Currency Group, faces legal challenges. Last year, a lawsuit by the NewYork Attorney General alleged fraudulent practices and attempts toconceal significant losses, implicating DCG along with other cryptocurrencygiants like Gemini and Genesis.
This article was written by Jared Kirui at www.financemagnates.com.
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