The New York Stock Exchange (NYSE) has revealed plans to introduce financial products linked to Bitcoin's spot price. The NYSE is teaming up with CoinDesk Indices to create cash-settled index options that will monitor the CoinDesk Bitcoin Price Index (XBX).

The XBX, which provides a real-time spot price for Bitcoin from major exchanges, has been active for over a decade. It currently serves as the benchmark for $20 billion in Bitcoin ETF assets.

Through these XBX-based options contracts, the NYSE aims to offer investors a new risk management tool as Bitcoin interest continues to rise. Regulatory approval is required for these products.

Jon Herrick, NYSE's Chief Product Officer, mentioned that these new options will provide investors with "access to an important liquid and transparent risk-management tool" in response to increasing Bitcoin demand.

This collaboration marks another significant entry of a traditional finance player into the Bitcoin market. According to the NYSE, this move demonstrates the "wide-ranging enthusiasm" following the recent approvals of spot Bitcoin ETFs, which are drawing institutions into the asset class.

Presently, the CME and a few other major entities offer Bitcoin derivatives. The NYSE's entry enhances credibility and signals growing acceptance of Bitcoin in the world of traditional finance.

With a market capitalization of $25 trillion, the NYSE's extensive reach, distribution, and influence will significantly impact Bitcoin indexing and derivatives.

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