{"id":91085,"date":"2024-05-30T01:08:43","date_gmt":"2024-05-30T05:08:43","guid":{"rendered":"https:\/\/ifintechworld.com\/?p=91085"},"modified":"2024-05-30T01:08:44","modified_gmt":"2024-05-30T05:08:44","slug":"new-york-stock-exchange-to-launch-bitcoin-options-products","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=91085","title":{"rendered":"New York Stock Exchange to Launch Bitcoin Options Products"},"content":{"rendered":"
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The New York Stock Exchange (NYSE) on Wednesday announced its intention to introduce cash-settled spot Bitcoin options<\/span>, pending regulatory clearance.<\/p>\n

The new Bitcoin options on the NYSE will track 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 $20b worth of Bitcoin ETFs.<\/p>\n

\u201cAs 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,\u201d said Jon Herrick, chief product officer at the NYSE.<\/p>\n

\u201cUpon regulatory approval, these options contracts will offer investors access to an important liquid and transparent risk-management tool,\u201d he added.<\/p>\n

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The NYSE is proud to announce our collaboration with @CoinDesk<\/a> Indices to launch cash-settled index options tracking the CoinDesk Bitcoin Price Index (XBX). NYSE President @LynnMartin<\/a> and @ThomasFarley<\/a>, CEO of @Bullish<\/a> discussed the announcement at Consensus 2024.<\/p>\n

\u2014 NYSE \ud83c\udfdb (@NYSE) May 29, 2024<\/a><\/p>\n<\/blockquote>\n

NYSE\u2019s Bitcoin Options Signal Growing Institutional Interest<\/h2>\n

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The success of Bitcoin derivatives this year is seen as a key factor enabling the launch of spot Bitcoin ETFs, which have been hugely popular. BlackRock\u2019s IBIT Bitcoin ETF stands out<\/span> as the biggest one yet, holding a massive $19.65b in assets.<\/p>\n

Even though the NYSE plans to launch these options, it\u2019s not the company\u2019s first foray into crypto derivatives. Parent company, the InterContinental Exchange (ICE), already offers futures contracts for Bitcoin through ICE Futures Singapore.<\/p>\n

Back in 2018, ICE launched Bakkt, a subsidiary offering physical Bitcoin futures. However, these futures struggled to compete with cash-settled options from the Chicago Mercantile Exchange (CME), and Bakkt eventually shifted its focus.<\/p>\n

Bitcoin Trading Plans Signal Wall Street\u2019s Crypto Embrace<\/h2>\n

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Earlier this month, CME announced plans for Bitcoin trading<\/span>. This move reflects Wall Street\u2019s growing appetite for cryptocurrency, with big financial players entering the crypto space in increasing numbers.<\/p>\n

In March, the NYSE took a step towards eco-friendly Bitcoin investing<\/span>, proposing to list 7RCC\u2019s environmentally-conscious spot Bitcoin ETF. This product offers investors exposure to Bitcoin alongside carbon credits, aiming to offset the environmental impact of cryptocurrency.<\/p>\n<\/p><\/div>\n