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The New York Stock Exchange will launch Bitcoin options products
Last Updated: May 30, 2024 12:20am EDT | 1 minute read
The New York Stock Exchange (NYSE) announced its intention on Wednesday introduce cash-settled spot Bitcoin optionsawaiting regulatory approval.
The new Bitcoin options on the NYSE will follow the CoinDesk Bitcoin Price Index (XBX) to determine their value. This index, created by CoinDesk Indices, has been around for a decade and is already used to track over $20 billion worth of Bitcoin ETFs.
“While traditional institutions and everyday investors are demonstrating their broad enthusiasm for the recent approval of bitcoin spot ETFs, the New York Stock Exchange is thrilled to announce its partnership with CoinDesk Indices,” said Jon Herrick, chief product officer of the NYSE.
“Following regulatory approval, these options contracts will offer investors access to an important liquid and transparent risk management tool,” he added.
The NYSE is proud to announce our partnership with @CoinDesk Indexes to launch cash-settled index options that track the CoinDesk Bitcoin Price Index (XBX). President of the NYSE @LynnMartin AND @ThomasFarleyCEO of @Bullish the announcement at Consensus 2024 was discussed.
— NYSE 🏛 (@NYSE) May 29, 2024
NYSE Bitcoin options signal growing institutional interest
The success of Bitcoin derivatives this year is seen as a key factor enabling the launch of Bitcoin spot ETFs, which have seen huge success. BlackRock’s IBIT Bitcoin ETF stands out as the largest yet, with a massive $19.65 billion in assets.
While the NYSE plans to launch these options, this is not the company’s first foray into crypto derivatives. The parent company, InterContinental Exchange (ICE), already offers futures contracts for Bitcoin through ICE Futures Singapore.
In 2018, ICE launched Bakkt, a subsidiary offering physical Bitcoin futures. However, these futures struggled to compete with cash-settled options on the Chicago Mercantile Exchange (CME), and Bakkt eventually shifted its focus.
Bitcoin trading floors signal Wall Street’s crypto embrace
Earlier this month, CME announced plans for Bitcoin trading. This move reflects Wall Street’s growing appetite for cryptocurrencies, with large financial players entering the crypto space in increasing numbers.
In March, the The NYSE has taken a step towards green investing in Bitcoin, proposing to list the environmentally conscious 7RCC Bitcoin spot ETF. This product offers investors exposure to Bitcoin alongside carbon credits, with the aim of offsetting the cryptocurrency’s environmental impact.