In another move reinforcing crypto’s legitimacy as a new class of assets, the world’s second-largest stock exchange, Nasdaq, has incorporated Bitcoin and Ethereum indices into its Global Index Data Service.
“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).”
While Brave New Coin says the indices are calculated via an “extensive BNC-BLX/ELX methodology”, the purpose of these indices is to reach a per coin price for both cryptocurrencies by referencing data from top exchanges such as Bitfinex, Coinbase, Kraken, and others.
Approved and recognized indices which track prices for various instruments and assets are crucial for developing institutional grade products and services, as they require utmost transparency and market clarity.
Nasdaq’s seal of approval for Brave New Coin’s Bitcoin and Ethereum indices is hence a step forward towards institutional recognition and could possibly hasten the creation, approval, and availability of related services and products, including the Bitcoin ETF proposals pending in front of the U.S. SEC.
This is a positive sign, building on our earlier post showing an increase in uptake for regulated Bitcoin futures products from CBOE and CME exchanges, strongly suggesting that cryptocurrencies are becoming increasingly attractive to institutional investors.