The New York Stock Exchange has announced that it has launched a Bitcoin index called NYXBT. The decision by the world’s largest stock exchange could further legitimize the digital currency. The sources from the exchange say that the index will track the daily price movements of the virtual coin. Currently, Bitcoin is valuing at $237.03.
According to the announcement NYXBT will calculate the currency value based on transactions from some select BTC exchanges. Talking about the index NYSE Group President Thomas Farley said that Bitcoin values are quickly becoming a data point that the customers want to follow as they consider transacting, trading or investing with this emerging asset class.
He also added that the exchange is pleased to bring transparency to this market. Similarly, sharing his views Cameron Winklevoss, president at Bitcoin exchange, Gemini said that he welcomes any index that increases price transparency and discovery. He along with his twin brother has their own Bitcoin index called the Winkdex.
Similar views were shared by James Robinson IV; managing partner at RRE Ventures who said that as Bitcoin and the blockchain become increasingly mainstream, major exchanges around the world will track and cover Bitcoin prices and volumes, as well as timely new developments with the technology.
The NYSE is not new for Bitcoin as earlier this year; it participated in a $75 million funding round for Coinbase, a virtual Bitcoin wallet that links to bank accounts. There were several investors that included names like venture capital firms Andreessen Horowitz, Union Square Ventures and Draper Fisher Jurvetson.
NYSE’s Index Committee will oversee the rules and methodology
Interestingly enough, it is the NYSE that is taking over the NASDAQ which once was labeled as the tech exchange as it is making technology companies a priority, increasingly securing more tech listings, including Alibaba (BABA) and Twitter (TWTR). The press release says that the NYSE Bitcoin Index will initially feature data from transactions from Coinbase Exchange.
Additionally, NYSE’s Index Committee will oversee the rules and methodology behind the benchmark, working to ensure it continuously reflects the current nature of the evolving Bitcoin market. The release informs that the committee will also identify and review the data sources for the index calculation process.
However, they must fulfill the standards set by the NYSE of rigorous standards for transparency, liquidity and governance are identified. Nonetheless, the NYSE Bitcoin suite of indices is anticipated to grow, with new indices introduced over time.
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