US-based NASDAQ stock exchange will soon start offering real-time information on BTC and ETH, allowing the stock exchange to track cryptocurrencies for the first time. The two indices will become part of NASDAQ’s existing platform of indexes starting February 25.
BLX and ELX to capture data from several exchanges
In a statement by NASDAQ, the stock exchange revealed that the Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) would provide users with a real-time port or reference rate for the price of 1 BTC and 1 ETH respectively. The prices of the indices will be quoted in USD and will be based on the most liquid ends of their respective markets.
According to NASDAQ, “both the BLX and ELX work by capturing data from multiple exchanges to provide a single price point for BTC and ETH, which helps traders get in and out of a given position.” The stock exchange operator added that independent auditors had verified the methodology.
The BLX is one of the most widely-referenced BTC indices among crypto traders, with data calculations dating back to 2010. The ELX also has a large data outlay, with its data calculations starting from 2014, the stock exchange added.
The BLX and ELX will join the many indices offered by NASDAQ, including the NASDAQ Composite, its main index, and the NASDAQ 100.
NASDAQ helping crypto attain mainstream adoption
This latest move by NASDAQ is seen as an essential one as it seeks to introduce cryptocurrency to traditional stock market investors all over the globe. The stock exchange showed interest in crypto assets despite the bear market and had started publishing analytical reports on Bitcoin and other cryptos. NASDAQ also partnered with investment management firm VanEck to bring a host of new cryptocurrency financial products to the market.
@Nasdaq and VanEck’s @MVISIndices announces #index #partnership and intention to bring to market transparent, regulated and surveilled #DigitalAssets products, such as #Bitcoin futures contracts. More info to come. Share & follow us. #crypto #futures #SMARTS #ConsensusInvest pic.twitter.com/Q2oCZx4pp1
— Gabor Gurbacs (@gaborgurbacs) November 27, 2018
NASDAQ is a strong boost to the emerging market. The exchange is currently the second largest stock market in the world, just behind the New York Stock Exchange (NYSE). It has over 3,400 companies listed on its platform and has a market value of over 10 trillion USD. Acceptance of cryptocurrencies by institutional investors on stock exchanges like NASDAQ will be a significant step towards achieving global crypto adoption.