Developing options contracts tied to the CoinDesk Bitcoin Price Index (XBX)
Contracts would be subject to regulatory approvals
The New York Stock Exchange, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced it is collaborating with CoinDesk Indices to launch cash-settled index options tracking the CoinDesk Bitcoin Price Index (XBX), the longest-operating spot bitcoin index.
ICE and the NYSE intend to work with CoinDesk Indices and the relevant regulatory agencies to develop specific product offerings. Last year, ICE Futures Singapore collaborated with CoinDesk Indices to update its bitcoin futures contracts, CoinDesk Bitcoin Futures (BMC), to utilize XBX for its monthly contract settlement.
Currently the benchmark for $20 billion in ETF assets under management, XBX tracks the spot price of bitcoin, denominated in U.S. dollars, in real time across multiple crypto exchanges. XBX is calculated and published once per second, 24 hours per day, 365 days each year.
“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,” said Jon Herrick, Chief Product Officer, New York Stock Exchange. “Upon regulatory approval, these options contracts will offer investors access to an important liquid and transparent risk-management tool.”
“XBX has delivered a trusted price of bitcoin to millions of investors, market participants, and bitcoin enthusiasts since 2014,” said Andy Baehr, Head of Product, CoinDesk Indices. “Collaborating with the NYSE to launch XBX index options opens a new chapter in digital assets, placing important and familiar risk-management tools in the hands of U.S. and global investors.”
The collaboration continues the relationship between two trusted organizations with unparalleled expertise in offering investor access and choice. CoinDesk Indices, a subsidiary of Bullish, produces indices that support some of the world’s largest digital asset products. Its flagship indices, such as XBX and the CoinDesk 20 Index, set the industry standard for measuring, trading and investing in digital assets. The NYSE, with 232 years of advances in trading technology, ranks as the world’s largest stock exchange, with a market capitalization of about $39 trillion.
NYSE President Lynn Martin and Tom Farley, CEO of Bullish, the parent of CoinDesk Indices, will be speaking together later today at the Consensus 2024 conference in Austin, Texas on a panel about the convergence of crypto and traditional finance.
