The Nasdaq stock exchange is today taking one step towards embracing cryptocurrencies, as it begins offering Bitcoin and Ethereum information. Specifically, the exchange platform will list two cryptocurrency indices.
Nasdaq to launch two cryptocurrency indices with the help of Brave New Coin
These are the Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) respectively. This move comes as part of a partnership with Brave New Coin, which will convey real-time data regarding the two indices to be displayed on the Nasdaq Global Index Data ServiceSM (GIDS).
Although the stock exchange floated these plans earlier this month, it has now confirmed that it will launch the functionality starting on February 25th.
”Effective Monday, February 25, 2019, Nasdaq, through its data dissemination relationship with Brave New Coin, will send real-time Bitcoin and Ethereum index level information on the Nasdaq Global Index Data ServiceSM (GIDS).”
Nasdaq has previously noted that the two indices will work through ”capturing data from multiple exchanges to provide a single price point for BTC and ETH, which helps traders get in and out of a given position.”
Moreover, the methodology used in calculating the indices has reportedly been independently audited against ”key IOSCO principles”. Furthermore, the BLX is referred to as being one of the most referenced BTC indices in cryptocurrency trader circles.
This is notable seeing as the Nasdaq is the world’s second-largest stock market by capitalization, trailing the New York Stock Exchange. In addition, these two cryptocurrency indices will join dozen of other Nasdaq indices.
Could the cryptocurrency indices signal increased institutional adoption?
What’s more, some have already heralded this development as a first step towards the approval of other cryptocurrency-related investment vehicles. One of these is cryptocurrency analyst Alex Ziupsnys, who said it was demonstrative of that there is ”no stopping” cryptocurrencies:
”[Nasdaq] are reading the writing on the wall and don’t want to get left behind. There is no stopping this. Adoption happens gradually right in front of you, until you finally pause, look around, and Bitcoin is the dominant asset.”
Ziupsnys also noted how this could potentially pave the way for other cryptocurrency-related derivatives:
”This is big news. The launch of Nasdaq crypto indices could lead to regulatory approval for crypto-based derivatives in the market. And as a direct initial effect could mean more interest from institutional traders.”
Although it is unclear exactly what effect the introduction of these two indices will actually have, their potential impact will undoubtedly be interesting to follow.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.