Brave New Coin’s BLX and ELX indices for Bitcoin and Ethereum have finally gone live on the Global Index Data Service managed by leading US tech stock exchange NASDAQ on Monday, February 25th.
According to an earlier announcement by the exchange,
“Effective Monday, February 25, 2019, Nasdaq, 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).”
This development marks a significant adoption milestone not just for Bitcoin and Ethereum but the cryptocurrency market in general as legitimate investment vehicles.
An announcement by Brave New Coin (BNC) on February 25th confirmed the launch of the indices. In the BNC announcement, the notification mentioned that,
“Nasdaq, the leading benchmark for US technology equity launched Brave New Coin’s Bitcoin and Ethereum Liquidity Indexes (BLX and ELX) on its platform which hosts 4,000 global indices.”
Both the Bitcoin Liquid Index and the Ethereum Liquid Index are creations of Brave New Coin whose price will be based on several factors as explained by BNC.
“BNC’s ‘Liquid Index’ (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 price data will also be an aggregate of the price of either asset in the leading US cryptocurrency exchanges such as Coinbase, Kraken, Bitfinex, and Gemini.
“The LX program was born out of a need for clear and transparent price discovery of liquid cryptographic assets and is a bigger need today than it was back in 2015 when we started this program”, said BNC CEO Fran Strajnar.
BNC is in the process of launching a liquidity index for the third most valuable cryptocurrency by market cap Ripple’s XRP. It is unclear as of the moment whether NASDAQ will also integrate the XRP Liquidity Index once BNC launches it.