Key Takeaways
- • ICE Futures Singapore and CoinDesk Indices announced a partnership to rebrand and update bitcoin futures contracts, now designated as CoinDesk Bitcoin Futures (BMC), effective October 2023.
- • The new contracts will settle against the CoinDesk Bitcoin Price Index (XBX), a USD-denominated benchmark calculated every second that has served as the reference rate for approximately $17 billion in assets under management since 2014.
- • CoinDesk Indices has managed over $40 billion in assets tied to cryptocurrency tracking indices covering Bitcoin, Ether, and other digital assets, establishing it as the leading provider of digital asset indices by AUM since its 2014 inception.
- • The partnership expands ICE's digital asset offerings in the Asia-Pacific region and provides institutional investors with an alternative to direct bitcoin holdings in a regulated trading and clearing environment.
Summary
Intercontinental Exchange, Inc. and CoinDesk Indices announced a strategic partnership to update ICE Futures Singapore's bitcoin futures contracts under a new branding structure. The contracts, rebranded as CoinDesk Bitcoin Futures (BMC), represent an institutional-grade solution designed to enhance marketplace accessibility for investors who face restrictions or constraints on direct bitcoin ownership. The partnership became effective in October 2023, with contract settlements tied to the CoinDesk Bitcoin Price Index (XBX).
The CoinDesk Bitcoin Price Index (XBX) serves as the settlement mechanism for the new contracts. XBX is a USD-denominated reference rate calculated every second and has operated continuously since 2014, establishing it as the longest-running and most trusted benchmark for bitcoin valuation. The index currently underpins approximately $17 billion in assets under management across various investment vehicles, demonstrating institutional adoption and market confidence in the pricing mechanism.
CoinDesk Indices, a subsidiary of CoinDesk, has positioned itself as the leading provider of digital asset indices by AUM since 2014. The organization manages over $40 billion in assets tied to cryptocurrency tracking indices that encompass Bitcoin, Ether, and other digital assets. Andy Baehr, Managing Director at CoinDesk Indices, characterized the collaboration as a significant expansion into the Asia-Pacific region and underscored the firm's commitment to serving global markets with institutional-quality solutions.
Maria Levanti, President and COO of ICE Futures Singapore, emphasized the regulatory infrastructure supporting the initiative. By offering the first futures contract based on CoinDesk's Bitcoin Price Index in a regulated trading and clearing environment in Singapore, ICE provides institutional customers with compliant access to bitcoin price exposure without requiring direct asset custody. This addresses a structural gap in the market for regulated institutional participation in digital asset derivatives.
The CoinDesk Bitcoin Price Index (XBX) serves as the settlement mechanism for the new contracts. XBX is a USD-denominated reference rate calculated every second and has operated continuously since 2014, establishing it as the longest-running and most trusted benchmark for bitcoin valuation. The index currently underpins approximately $17 billion in assets under management across various investment vehicles, demonstrating institutional adoption and market confidence in the pricing mechanism.
CoinDesk Indices, a subsidiary of CoinDesk, has positioned itself as the leading provider of digital asset indices by AUM since 2014. The organization manages over $40 billion in assets tied to cryptocurrency tracking indices that encompass Bitcoin, Ether, and other digital assets. Andy Baehr, Managing Director at CoinDesk Indices, characterized the collaboration as a significant expansion into the Asia-Pacific region and underscored the firm's commitment to serving global markets with institutional-quality solutions.
Maria Levanti, President and COO of ICE Futures Singapore, emphasized the regulatory infrastructure supporting the initiative. By offering the first futures contract based on CoinDesk's Bitcoin Price Index in a regulated trading and clearing environment in Singapore, ICE provides institutional customers with compliant access to bitcoin price exposure without requiring direct asset custody. This addresses a structural gap in the market for regulated institutional participation in digital asset derivatives.
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