The Nasdaq stock exchange will start offering information on indices related to the cryptocurrency that are Bitcoin core and Ethereum. These indices will be included on the exchange existing platform from the 25th of February.
BLX and ELX Indices Will Capture Data From Multiple Exchanges
The Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) will “provide a reference rate for the price of 1 BTC and 1 ETH respectively, quoted in USD, and will be based on the most liquid ends of their markets,” said Nasdaq in anonline statementpublished Feb. 11.
According to the statement, “BLX and ELX will work by capturing data from multiple exchanges to provide a single price point for both BTC and ETH which will helps traders, get in and out of a given position easily.”
Nasdaq claims the methodology has been verified by independent auditors beforehand.
“The BLX is one of the most widely referenced BTC indices among traders and has been calculated back to 2010. Likewise, the ELX has been calculated back to 2014,”Said the exchange
Driving Crypto Adoption Into Mainstream
These two indices were created by Brave New Coin. Nasdaq’s decision is seen as an attempt to introduce cryptocurrency to traditional stock market investors on Wall Street and elsewhere, therefore driving mainstream adoption of these cryptocurrencies.
The two new indices join the previous several dozen of Nasdaq’s indices including the Nasdaq Composite, which is its main index through its Global Index Data Service. The data service is a real-time feed that consolidates all Nasdaq indexes and ETF valuation data, including third-party partner data together.
Nasdaq is the world’s second largest stock market by capitalization, New York Stock Exchange being the first. More than 3,400 companies are listed on the platform, which sums a total market value of $10 trillion. Cryptocurrency is expected to benefit from the exchange’s expansive reach amongst people. Acceptance by institutional investors which dominate trade on Nasdaq is regarded by some as a major step towards mainstreaming virtual currencies as well as increasing adoption of cryptocurrency amongst people.
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