Nasdaq, the U.S. exchange known for listing major technology companies such as Apple and Alphabet (Google), this week officially launched two core cryptocurrency indices—Bitcoin and Ethereum—on its platform of 4,000 global indices.
The Bitcoin Liquid (BLX) and Ethereum Liquid (ELX) indices provide real-time dollar price data for 1 BTC and 1 ETH respectively, based on pricing from the most liquid trading venues for each market. Created by Brave New Coin, both indices will update every 30 seconds.
Indices designed to become benchmarks for traders
According to Nasdaq, the BLX and ELX derive their values by aggregating data from multiple cryptocurrency exchanges to produce a single reference price for Bitcoin and Ethereum. This consolidated pricing aims to give traders more reliable information to enter and exit positions.
Nasdaq and Brave New Coin say the methodology has been reviewed by independent auditors and aligns with key principles of the International Organization of Securities Commissions (IOSCO). “The methodology improves transparency around crypto asset pricing, a concern that has made regulators cautious about approving retail derivative products” such as Bitcoin ETFs, Brave New Coin said in a statement.
When Nasdaq announced the upcoming launch of its crypto indices two weeks ago, it noted: “BLX is one of the most widely referenced BTC indices among crypto traders and has been back-calculated to 2010. Likewise, ELX has been calculated back to 2014.”
A further step toward mainstream crypto adoption
Market observers view Nasdaq’s initiative as an important step in bringing cryptocurrencies closer to traditional Wall Street investors and the wider public. Unlike many established financial institutions, Nasdaq has engaged with digital assets early—publishing analytical reports on Bitcoin and partnering with VanEck to launch Bitcoin futures despite last year’s falling market.
The two new indices join dozens of Nasdaq indices, including the Nasdaq Composite and the Nasdaq-100, through the exchange’s Global Index service. That data service provides a real-time feed consolidating all Nasdaq-calculated indices and ETF pricing data, including inputs from third-party partners.
“The wave of crypto derivatives is inevitable,” said Fran Strajnar, CEO of Brave New Coin.
“Once custody and segregation challenges are resolved—steps such as Fidelity’s recent announcements and Nasdaq’s BTC and ETH indices are encouraging progress—there will likely be a race to create financial instruments that institutional investors have been asking for over the past three years,” he added.
It is worth noting that Nasdaq is the world’s second-largest exchange by market capitalization, after the New York Stock Exchange. More than 3,400 companies are listed on Nasdaq, with a combined market value of roughly $10 trillion.
The broader cryptocurrency industry stands to benefit from Nasdaq’s wide reach, which should raise awareness and visibility for digital assets. Making Bitcoin and Ethereum indices available alongside Nasdaq’s other benchmarks is also expected to help familiarize institutional investors with cryptocurrencies.
Finally, positive signs for broader crypto adoption have been accumulating recently, including growing speculation about the U.S. Securities and Exchange Commission’s potential approval of Bitcoin ETFs and developments like JP Morgan creating its own cryptocurrency.