Nasdaq has decided to add Bitcoin and Ethereum liquidity index to the Brave new coin(BNC), in hopes of bringing more market price transparency. Nasdaq is one of the leading benchmark for the US equity trading and indexing, with over 4,000 indices in its database.
Nasdaq is one of the leaders in benchmarking and has taken upon itself to bring transparency to the cryptocurrency trading space and pan the market to a much wider audience.
BLX & ELX Would Create Price Transparency
The biggest problem in the crypto space at the current movement is the opacity with the trading spot market. With a ton of exchanges operating in the space, with most of them relying on fudged numbers to attract most customers, it becomes quite difficult to map the growth or value of any cryptocurrency in particular.
With traditional markets, the stocks of a particular firm are listed on a single exchange and all the details of the company are publically available. While each crypto token is listed on several exchanges, and the correct picture is hard to get.
Nasdaq is aiming to bring in the same methodologies of the traditional stock market to the crypto trade market, in hopes of bringing in more transparency and help to protect the investors trading on digital asset market.
BLX and ELX can be used as a Universal Benchmark
Bitcoin has been deemed as a virtual commodity by CFTC since 2015, however, the price disparity of Bitcoin can still fluctuate up to $1,000 between the exchanges and countries at any given time, showing the need of a common benchmark.
Nasdaq is hoping to create a universal benchmark for digital space through its Brave new coin’s BLX and ELX indices. The largest indexing US firm is hoping that the new benchmark standard would help the cryptocurrency space to have a more reliable benchmark to look up to.
Apart from creating the Etheruem and Bitcoin liquidity index the next goal of BNC is to create a Ripple liquidity index with a variety of market participants to come up with custom indices. BNC is also looking to roll out various liquidity indices program for other liquid currencies and assets with time.
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