NYSE Introduces Cash-Settled Index Options Tracking Bitcoin (XBX) to Revolutionize Crypto Trading

• The New York Stock Exchange (NYSE) has announced a collaboration with CoinDesk Indices to launch cash-settled index options tracking the CoinDesk Bitcoin Price Index (XBX).
• This partnership aims to offer investors a liquid and transparent risk-management tool, enhancing the accessibility and utility of digital assets.
• Jon Herrick, Chief Product Officer at NYSE, emphasized the significance of this development, highlighting the growing enthusiasm for spot bitcoin ETFs among traditional institutions and everyday investors.

Discover how the NYSE’s new cash-settled index options tracking XBX could revolutionize risk management in the crypto market.

NYSE and CoinDesk Indices Collaboration

The New York Stock Exchange has partnered with CoinDesk Indices to introduce cash-settled index options that track the CoinDesk Bitcoin Price Index (XBX). This index is the longest-operating spot bitcoin index and serves as a benchmark for $20 billion in ETF assets under management. The XBX tracks the real-time spot price of bitcoin across multiple crypto exchanges, providing a reliable and transparent measure of bitcoin’s market value.

Enhancing Risk Management Tools

Jon Herrick, Chief Product Officer at NYSE, stated that the collaboration with CoinDesk Indices aims to provide investors with a crucial risk-management tool. These options contracts, pending regulatory approval, will offer a liquid and transparent means for managing risk in the volatile crypto market. Andy Baehr, Head of Product at CoinDesk Indices, echoed this sentiment, noting that the XBX has been a trusted source of bitcoin pricing since 2014 and that this new product will further empower investors globally.

BitGo Custody for CoinDesk 20 Index

In a related development, CoinDesk Indices has partnered with BitGo to offer custody services for the CoinDesk 20 Index. This index provides a diversified portfolio that tracks the performance of the top digital assets, using a capped market capitalization-weighted methodology. This partnership aims to meet the growing institutional demand for secure and reliable digital asset custody solutions. The CoinDesk 20 Index has already generated significant interest, with approximately $5 billion in perpetual futures volume since January 2024.

Conclusion

The collaboration between NYSE and CoinDesk Indices marks a significant milestone in the integration of traditional financial markets with the burgeoning digital asset sector. By offering cash-settled index options tracking the XBX, the NYSE is providing investors with a valuable tool for managing risk and gaining exposure to bitcoin. As the crypto market continues to evolve, such innovations will likely play a crucial role in attracting more institutional and retail investors, further solidifying the position of digital assets in the global financial landscape.