The New York Stock Exchange (NYSE) Tuesday launched a new bitcoin index that will allow investors to track the virtual currency as an emerging asset class.
The new NYSE Bitcoin Index (NYXBT) is the first bitcoin index that is calculated and disseminated by an exchange. It represents the U.S. dollar value of one bitcoin unit, and is calculated based upon actual transactions that are occurring on bitcoin exchanges that have been screened by the NYSE.
Initially, the index will only use data from the Coinbase Exchange (which the NYSE holds a minority stake in); but other data sources that meet certain criteria for transaction activity, data reliability, and transparency may be added in the future. The NYSE Index Committee will oversee the rules and methodology governing the benchmark.
The index calculation methodology relies on rules-based logic to analyze data from matched transactions and aims to produce a fair, objective daily value for one bitcoin in U.S. dollars, as of 16:00 Greenwich Mean Time (GMT). The index will be published shortly after that time via the NYSE Global Index Feed, and made publicly available on the NYSE index page.
The NYSE says that it expects its suite of bitcoin indices to grow, with new indices introduced over time. “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 complimentary products based on our rigorous standards and proprietary index methodology,” he added.