As per a company announcement made on its website as on 12th February, Nasdaq revealed that it would introduce two new indices, Bitcoin and Ethereum, by the end of this month that would help to monitor the cryptocurrency prices.
The company has collaborated with New Zealand-based blockchain data and research firm Brave New Coin to provide useful information on the two new indices from last week of February.
The two new indices — the Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) would provide the details of real-time price which would be updated in an interval of every thirty-second for users who are using NASDAQ’s Global Index Data Service (GIDS).
BLX and ELX is the product of United States blockchain and crypto asset market data company Brave New Coin. Since last year, Nasdaq is putting down its efforts to pursue cryptocurrency-related products and services.
As per the company’s announcement, “The Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) are each designed to provide a real-time spot or reference rate for the price of 1 BTC and 1 ETH respectively, quoted in USD, and based on the most liquid ends of their markets. Both indices are calculated using a methodology that has been independently audited against key IOSCO principles. The BLX is one of the most widely-referenced BTC indices among crypto traders and has been calculated back to 2010. Likewise, the ELX has been calculated back to 2014.”
The indexes would gather data from different exchanges to give a distinct price point for bitcoin and ethereum which would assist the traders to receive every detail to enter and exit from a particular position. Such information would be broadcasted to the users of Nasdaq’s GIDS data feed thereby joining the team of 40,000 of Nasdaq indexes which also includes the famous Nasdaq 100 and Nasdaq Composite.
The relation between Nasdaq and crypto is not something new. Nasdaq, which is popular for offering equity, options and futures marketplaces also provides trading and market surveillance technology to at least seven cryptocurrency exchanges. It has also collaborated with Symbiont, Crypto firm, to provide a white label solution that would enable other exchanges to introduce markets which are formed on the blockchain technology. Moreover, Nasdaq has been working on its own bitcoin futures product to be introduced in the market, the final date of which is yet to be announced. With respect to Brave New Coin, the website offers news and examination on the cryptocurrency market.
Adena Friedman, Nasdaq chief executive officer, stated about the technology through a Linkedin post which was posted prior to the World Economic Forum’s annual meeting in Davos in which he said, “The invention itself is a tremendous demonstration of genius and creativity, and it deserves an opportunity to find a sustainable future in our economy,”
