Today the New York Stock Exchange (NYSE) said it plans to launch cash-settled spot Bitcoin options with the price tracking the CoinDesk Bitcoin Price Index (XBX), subject to regulatory approval.
The NYSE is part of the InterContinental Exchange (ICE), which already offers futures as part of ICE Futures Singapore.
“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, New York Stock Exchange. “Upon regulatory approval, these options contracts will offer investors access to an important liquid and transparent risk-management tool.”
Notably, BlackRock’s IBIT Bitcoin ETF recently became the largest, with $19.5 billion in assets under management.
Coindesk, the publisher and index provider, is now owned by Bullish whose CEO is Tom Farley. He is the former President of the NYSE.
This isn’t ICE’s frist foray into Bitcoin derivatives in the United States. In 2018 ICE started a crypto subsidiary Bakkt, which launched physical delivery Bitcoin futures traded on ICE Futures US and cleared via ICE Clear US. However, they never gained serious traction compared to the cash settled derivatives offered by the CME. Bakkt subsequently pivoted.
Meanwhile, the CME and Cboe have had differing fortunes in crypto. The CME has around $2 billion in crypto open interest contracts and is reportedly considering entering the spot market. In contrast, the Cboe open interest is less than one-thirtieth of the CMEs. It entered the spot market by acquiring ErisX and recently shuttered the spot side.
