Nasdaq recently announced that on February 25th, 2019 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) offering two new index for the cryptocurrency market.
The two cryptocurrency indexes
The so-called Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX), created by Brave New Coin, aims 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,”according to the release.
The indexes capture data from various exchanges to provide a single price point for bitcoin and ethereum to help traders get in an out of a given position. They will be disseminated to clients of Nasdaq’s GIDS data feed, joining 40,000 of Nasdaq indexes including the likes of the Nasdaq 100 and Nasdaq Composite. The indexes will go live on Nasdaq at the end of the month.
“Both indices are calculated using a methodology that has been independently audited against key IOSCO principles,” the alert added. “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.”
Nasdaq is no stranger to the crypto world. The firm, which is known for operating equity, options and futures marketplaces, provides trading and market surveillance technology to at least 7 cryptocurrency exchanges. It also has partnered with crypto firm Symbiont to offer a white label solution that allows other exchanges to launch markets built on blockchain technology. In addition, Nasdaq has been working on its own bitcoin futures product — although the exact launch date for the new market is uncertain. As for Brave New Coin, the website offers news and analysis on the cryptocurrency market.
“The invention itself is a tremendous demonstration of genius and creativity, and it deserves an opportunity to find a sustainable future in our economy,” Nasdaq chief executive officer Adena Friedman said of the technology in a LinkedIn post prior to the World Economic Forum’s annual meeting in Davos.
In addition to the real-time tick messages, Nasdaq will support the following directory messages on GIDS:
- Equities Summary (Message Type F): Disseminated at the end of the U.S. and European trading session to relay the summary of the current trading day’s activity for an equity index.
- Index Directory (Message Type R): Disseminated at the start of each day to relay basic index information.