The New York Stock Exchange (NYSE) has partnered with CoinDesk to track spot Bitcoin prices. This collaboration aims to bridge traditional finance with cryptocurrency 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 everyday investors are demonstrating their wide-ranging enthusiasm for the recent approval of spot bitcoin ETFs, the New York Stock Exchange is excited to announce its collaboration with CoinDesk Indices. Upon regulatory approval, these options contracts will offer investors access to an important liquid and transparent risk-management tool."
Options contracts tied to the XBX enable users to access an avenue for managing risk and exposure to Bitcoin's price movements. While the development of these options contracts is underway, they are subject to regulatory approvals to ensure compliance with relevant laws and regulations.
XBX is a benchmark index for tracking Bitcoin 's spot prices. With approximately $20 billion in ETF assets under management tied to XBX, the index shows Bitcoin's value in real-time across various cryptocurrency exchanges. 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 York Stock Exchange. The acquisition positioned the crypto media publication as an autonomous subsidiary within Bullish, safeguarding its identity and editorial operations while benefiting from financial backing for expansion.
Acquisition by Bullish
Kevin Worth, the CEO of CoinDesk, expressed enthusiasm about the partnership. He emphasized the potential for product development and expansion in the burgeoning crypto economy. With Bullish's financial backing, CoinDesk said it would capitalize on opportunities in media, events, and indices.
However, amidst the acquisition, CoinDesk's parent company, Digital Currency Group, faces legal challenges. Last year, a lawsuit by the New York Attorney General alleged fraudulent practices and attempts to conceal significant losses, implicating DCG along with other cryptocurrency giants like Gemini and Genesis.
