Bitcoin has gone big time – and is now live on the New York Stock Exchange.
The NYSE announced yesterday that is has launched the NYSE Bitcoin Index (NYXBT), the first exchange-calculated and disseminated bitcoin index. The NYXBT Index will represent the U.S. dollar value of one bitcoin unit based upon actual transactions occurring on select bitcoin exchanges which have been evaluated and meet NYSE’s quality standards.
“Bitcoin values are quickly becoming a data point that our customers want to follow as they consider transacting, trading or investing with this emerging asset class,” said Thomas Farley, group president at NYSE.
NYXBT utilizes a unique methodology that relies on rules-based logic to analyze a dataset of matched transactions and verify the integrity of the data to ultimately produce an objective and fair daily value for one bitcoin in U.S. Dollars as of 16:00 London time. The index will be published within a short period of that time via the widely-distributed NYSE Global Index Feed (GIF) as well as made publicly available for an initial period on the NYSE index page.
The NYSE Bitcoin Index will initially feature data from transactions from Coinbase Exchange, the leading U.S.-based bitcoin exchange. In 2015, NYSE made a minority investment in Coinbase, a leading bitcoin wallet and trading platform with over 2.8 million consumer wallets, 39,000 merchants and 7,000 developers.
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 committee will also identify and review the data sources for the index calculation process as further exchanges that meet NYSE’s rigorous standards for transparency, liquidity and governance are identified. The NYSE Bitcoin suite of indices is anticipated to grow, with new indices introduced over time.
