The New York Stock Exchange (NYSE) is taking another major step towards the adoption of Bitcoin by traditional financial institutions. The exchange operator plans to introduce cash-settled Bitcoin options in the near future, subject to regulatory approval.
The new wave of Bitcoin products hits Wall Street
The doors of high finance continue to open to Bitcoin. After the resounding success of Bitcoin ETFs this year, with the flagship fund IBIT from BlackRock reaching $19.65 billion in assets under management, the NYSE is following suit by offering derivatives backed by the queen of cryptos.
The New York Stock Exchange has announced on Wednesday its intention to introduce cash-settled Bitcoin options subject to regulatory approval.
According to Jon Herrick, Director of Products at NYSE, once these Bitcoin options contracts receive the regulatory green light and are launched, they will represent an essential risk management tool for investors, offering high liquidity and remarkable transparency.
The new options will follow the index CoinDesk Bitcoin (XBX), the benchmark established 10 years ago on which over $20 billion of Bitcoin ETFs are already based.
NYSE’s strong signal for Wall Street Bitcoin adoption
This announcement reinforces the trend for financial giants to embrace cryptocurrencies. Recently, the CME also plans to trade Bitcoin cash while the parent company of NYSE, ICE already offers physical futures contracts via Bakkt.
Last month, the NYSE has even taken a step towards greener Bitcoin investing, aiming to list a carbon-neutral spot ETF.
In sum, despite the recent consolidation of the Bitcoin price into a tight range of $67,000 to $69,000, the institutional appetite for investment products backed by the queen of crypto continues.
This new wave of Bitcoin options and derivatives, driven by Wall Street heavyweights such as the NYSE seems to augur a bright future for the institutional adoption of digital assets. The crypto sector is thus taking another step towards its integration into the major traditional financial markets.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
