The New York Stock Exchange has declared plans for a partnership to track options related to Bitcoin.

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The NYSE and CoinDesk Market Indexes are joining forces to introduce new products that will track the price of Bitcoin. This partnership will result in the creation of a cash-settled index, providing opportunities for options trading with Bitcoin. This will benefit traditional traders and those utilizing the CoinDesk Bitcoin Price Index (XBX).

According to Jon Herrick, Chief Product Officer at the NYSE, there is growing interest in Bitcoin from both institutional and everyday investors, especially since the recent approval of spot Bitcoin ETFs. The NYSE is excited to team up with CoinDesk Indices and offer investors a valuable and transparent risk-management tool through these options contracts once they are approved by regulators.

Currently, XBX keeps track of the real-time spot price of Bitcoin in USD across multiple crypto exchanges. As the largest stock exchange in the world with a market capitalization of $39 trillion, the NYSE’s collaboration with XBX is a significant move in the crypto market.

This collaboration indicates the NYSE’s interest in the positive sentiment surrounding Bitcoin, following the approval of a spot Bitcoin ETF earlier this year. The spot Bitcoin ETF allows general investors to quickly gain exposure to Bitcoin without directly purchasing or storing the cryptocurrency, making it more accessible during regular market hours.

With the introduction of cash-settled options through the NYSE and XBX collaboration, investors now have the option to hedge or speculate on Bitcoin price movements. This simplifies the risk management process and enables investors to execute advanced trading strategies using traditional indexes, without the need for new financial instruments or accounts.