Nasdaq To Offer Two New Crypto Indices This Month

Announcements, News | February 14, 2019 By:

Exchange operator Nasdaq will be offering two new indices tracking cryptocurrency prices later this month.

In an update on its website, Nasdaq announced that it will be adding Brave New Coin’s Bitcoin and Ethereum Liquidity Indexes (BLX and ELX) to the Nasdaq Global Index Data Service, the exchange operator’s data suite of 4,000 indices, on February 25.

“The Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) are each designed 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,” Nasdaq said. “Both indices are calculated using a methodology that has been independently audited against key IOSCO (International Organisation of Securities Commissions) principles. 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.”

According Brave New Coin, its LX indices are part qualitative and part quantitative, factoring in the stability and quality of constituency as well as the volume, book depth, tick size and other factors from the qualified market participants, to calculate a fair global value for the price of bitcoin and ethereum, expressed in USD, every 30 seconds.

The addition of the new crypto indices is part of Nasdaq’s mission to bring transparency to crypto trading and open up the sector to a wider audience. Last year, Nasdaq announced a collaboration with Gemini cryptocurrency exchange, which allowed Gemini to leverage Nasdaq’s SMARTS Market Surveillance technology to monitor its marketplace.