[NEWS] New York Stock Exchange to launch Bitcoin options trading

On the 29th, the New York Stock Exchange (NYSE) announced that it has partnered with Coindesk Indices to offer cash-settled index options based on the Bitcoin (BTC) spot index, The Coindesk Bitcoin Price Index (XBX).

The NYSE will partner with Coindesk Indices and regulators to develop Bitcoin options. Last year, ICE Futures Singapore partnered with Coindesk Indices to update its Bitcoin futures contract, Coindesk Bitcoin Futures (BMC), to use XBX for monthly contract settlement.

Currently, XBX is the benchmark for $20 billion (approximately 3 trillion yen) of ETF assets under management, and tracks the real-time spot Bitcoin price in US dollars on multiple cryptocurrency (virtual currency) exchanges. XBX is calculated and published once per second, 24 hours a day, 365 days a year.

NYSE Chief Product Officer Jon Herrick said in a statement, "Traditional institutional and retail investors have recently shown enthusiasm for the approval of a Bitcoin spot ETF, and NYSE is pleased to announce our partnership with CoinDesk Indexes. If approved by regulators, these options contracts will provide investors with access to important liquidity and a transparent risk management tool."

Andy Baetr, head of product at CoinDesk Indexes, said, "XBX has provided millions of investors, market participants, and Bitcoin enthusiasts with reliable Bitcoin prices since 2014. Our collaboration with NYSE to launch XBX index options will open a new chapter in digital assets, putting an important and familiar risk management tool in the hands of investors in the U.S. and around the world."

Pavement for the launch of cryptocurrency trading

The launch of options trading could also be a stepping stone for NYSE to launch cryptocurrency spot trading.

NYSE President Lynn Martin said at a panel discussion at Consensus 2024 in Austin, Texas, "If there is clear regulatory guidance in the U.S., that would be an opportunity to consider it," suggesting that the company is ready to start offering cryptocurrency trading.

Currently, the U.S. is in the process of developing cryptocurrency-related regulations. As this trend accelerates, traditional financial institutions may also enter the market one after another.

Reference: Announcement
Image: Shutterstock

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