The New York Stock Exchange today launched its NYSE Bitcoin Index (NYXBT) to track the price of bitcoin and give the digital currency’s value a definitive global benchmark.
This move by one of the largest and most influentialstock exchanges in the world gives bitcoin new legitimacy and “gravitas” and may seal its spot in first place as the digital currency of choice.
New York Stock Exchange President Thomas Farley made the announcement today saying in a news release:
“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. 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.”
Tracking the Price of Bitcoin
The new NYXBT Index will indicate the U.S. dollar value of one bitcoin based on actual transactions occurring at 16:00 London time on selected bitcoin exchanges.
The NYSE Bitcoin Index will initially use data from transactions from Coinbase Exchange. Other bitcoin exchanges will be carefully evaluated by the NYSE and will have to meet the quality standards set by the stock exchange.
The NYSE’s Index Committee will oversee the rules and methodology behind the benchmark, making sure it reflects the current nature of the evolving bitcoin market. The committee will also identify and review the data sources for the index calculation process and identify other bitcoin exchanges that meet NYSE’s “rigorous standards for transparency, liquidity and governance.”
The NYXBT index will be published as a part of the NYSE Global Index Feed and will be publicly available on the New York Stock Exchange’s Index Page.
Currently, sites such as Google and Bloomberg track the price of bitcoin, but the New York Stock Exchange’s Bitcoin Index will likely replace these indices as a single global indicator.
Jessie Willms is a planet earth based former government and political researcher and communications officer helping to document the FinTech revolution and its impact on traditional institutions and governments. You can follow Jessie on Twitter at @WILLMS_.