Nasdaq’s New BTC and ETH Indices Launch With Real-Time Price Data
February 26th, 2019
The Nasdaq stock exchange has officially listed bitcoin core and ethereum indices on its platform of 4,000 global indices starting Monday, Feb. 25. The Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) provide real-time information on the price of 1 BTC and 1 ETH in dollar terms, based on the most liquid ends of their markets. Both indices, created by market data company Brave New Coin, will be refreshed every 30 seconds.
Crypto Indices to Capture Data From Multiple Exchanges
According to Nasdaq, the BLX and ELX work by capturing data from multiple exchanges to provide a single price point for bitcoin core and ethereum which “helps traders get in and out of a given position.”
Nasdaq and Brave New Coin (BNC) claim the methodology has been verified by independent auditors and against key International Organisation of Securities Commissions (IOSCO) principles. “The methodology adds to the transparency of pricing crypto assets, a concern that has prevented regulators in approving retail products,” said BNC in a statement.
Announcing the cryptocurrency indices two weeks ago, Nasdaq stated:“The BLX is one of the most widely-referenced BTC indices among crypto traders and has been calculated back to 2010. Likewise, the ELX has been calculated back to 2014.”
Nasdaq’s latest move is seen as crucial to introducing cryptocurrency to traditional stock market investors on Wall Street and elsewhere, thereby driving mainstream adoption. The stock exchange has swam against the tide in being drawn to crypto assets, starting with publishing analytical reports on Bitcoin and partnering with Vaneck to launch BTC futures trading in a falling market last year.
‘Crypto Derivatives Wave Inevitable’
The two new indices join several dozen of Nasdaq’s indices including the Nasdaq Composite, its main index, and the Nasdaq 100, through its Global Index Data Service. The data service is a real-time feed that consolidates all Nasdaq indexes and ETF valuation data, including third-party partner data.
“The crypto derivative wave is inevitable,” Fran Strajnar, chief executive officer of Brave New Coin commented. “Once custody was solved, first with Fidelity’s announcements last November, and now with indices that align with IOSCO principles being available through the Nasdaq, there’s going to be a rush to produce all manner of financial instruments, which the institutional users have been asking for, for almost 3 years now,” he added.
The Nasdaq is the world’s second largest stock market by capitalization, behind only the New York Stock Exchange. More than 3,400 companies are listed on the bourse, which boasts a total market value of $10 trillion. Cryptocurrency is expected to benefit from the exchange’s expansive reach. Acceptance by institutional investors which dominate trade on the Nasdaq is regarded by some as a major step towards mainstreaming virtual currencies as well as increasing adoption.