New York Stock Exchange to Launch Bitcoin Options Products

The New York Stock Exchange (NYSE) on Wednesday announced its intention to introduce cash-settled spot Bitcoin options, pending regulatory clearance.

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.

“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 at the NYSE.

“Upon 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 collaboration with @CoinDesk Indices to launch cash-settled index options tracking the CoinDesk Bitcoin Price Index (XBX). NYSE President @LynnMartin and @ThomasFarley, CEO of @Bullish discussed the announcement at Consensus 2024.

— NYSE 🏛 (@NYSE) May 29, 2024

NYSE’s Bitcoin Options Signal Growing Institutional Interest

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’s IBIT Bitcoin ETF stands out as the biggest one yet, holding a massive $19.65b in assets.

Even though the NYSE plans to launch these options, it’s not the company’s first foray into crypto derivatives. Parent company, the InterContinental Exchange (ICE), already offers futures contracts for Bitcoin through ICE Futures Singapore.

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.

Bitcoin Trading Plans Signal Wall Street’s Crypto Embrace

Earlier this month, CME announced plans for Bitcoin trading. This move reflects Wall Street’s growing appetite for cryptocurrency, with big financial players entering the crypto space in increasing numbers.

In March, the NYSE took a step towards eco-friendly Bitcoin investing, proposing to list 7RCC’s environmentally-conscious spot Bitcoin ETF. This product offers investors exposure to Bitcoin alongside carbon credits, aiming to offset the environmental impact of cryptocurrency.