Nasdaq Added Bitcoin And Ethereum Cryptocurrency Liquidity Indices
On February 26, the US Nasdaq Stock Exchange added Bitcoin and Ethereum (BLX and ELX) cryptocurrency liquidity indices to its platform. In the future the company plans to launch the XRP digital asset index created by Ripple.
Liquidity indices take into account both qualitative and quantitative characteristics of the cryptocurrency market. The list of the main factors affecting BLX and ELX include:
- Trade volume;
- Market depth;
- Tick size (the smallest price increase);
- Market stability.
Based on these parameters, an index is generated every 30 seconds, which reflects the actual value of Bitcoin or Ethereum in USD. Brain New Coin director Fran Steinar said that the BLX and ELX indices are a valuable tool for the trader, as they provide accurate information about the real value of digital assets.
The liquidity indices developed by Brave New Coin have been independently audited for compliance with the requirements of the International Organization of Securities Commissions. This is an important factor, as Nasdaq plans to start trading in Bitcoin futures in the second quarter of 2019. According to financial experts, the integration of robust cryptocurrency indices will increase the chances of making a positive decision on the issue of launching futures contracts.
Brave New Coin has almost completed work on creating the XRP Liquidity Index (RLX). A digital asset from Ripple was added yesterday to the Coinbase Pro crypto-exchange, which had a positive effect on its rate: the price of the token in the last 24 hours increased by 5.36%. It is also worth noting that the company Brave New Coin is working with market participants to develop index baskets, which will include several cryptocurrencies.