Great news surfaced this week for all the Bitcoin lovers and enthusiasts this week, as the New York Stock Exchange (NYSE) announced that they are planning to launch a Bitcoin index. The Bitcoin index will be the first exchange-calculated and disseminated Bitcoin index in the world.
The Bitcoin index will be launching today and will be representing the USD value of a Bitcoin based upon the value it actually trades at on selected Bitcoin exchanges, which has been evaluated and approved to the high standards of the NYSE.
“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 NYSE Group President Thomas Farley. “As a global index leader and administrator of ICE LIBOR, ICE Futures U.S. Dollar Index and many other notable benchmarks, we are pleased to bring transparency to this market. By combining our technology infrastructure with our expertise in index calculation and data management, we will continue to launch complementary products based on our rigorous standards and proprietary index methodology.”
The NYSE Bitcoin index will initially receive its data from Coinbase, one of the leading online Bitcoin exchanges in the US and the world, where NYSE made an investment earlier this year in a public funding round.
The NYSE Index Committee will be overseeing the rules and methodology behind the index to ensure that it actually reflects the value and the nature of the Bitcoin market. They will also be reviewing the data sources for the index calculation process when new exchanges that lives up to the high standards, rules, liquidity, transparency and governance are found and accepted as a “provider”.
The NYSE Bitcoin index is expected to grow significantly within a short period of time, being a product that many investors has been asking for. New features and indices will be introduced to the Bitcoin index over time, showing that they believe in the future of the Bitcoin.
The index has been dubbed “NYXBT” and will be the first of many indexes to be created, but no further information was given about the later indexes that will be launched.
This is huge news for the Bitcoin and for everyone who uses it for trading, purchasing or simply as a money transfer service. This gives a huge push in the right direction for mainstream adaption and with it being as secure as possible, it will show people the true value of the Bitcoin and give an incentive towards investing, buying or trading Bitcoins in the future.
“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.” A press release from the NYSE reads.
Perhaps more stock exchanges around the world will integrate a similar index in the future, spreading the Bitcoin to more markets and thus increase the overall need for Bitcoins and push the value back to where it should be.