Coming as a positive development for the crypto community, Nasdaq exchange is adding Brave New Coin’s XRP Liquid Index on 1st May. The news has sent the cryptocurrency traders into a bull hysteria.
Interestingly, within an hour of the above announcement, XRP had increased by about four percent.
It is to be noted that the announcement comes within months of Nasdaq adding Brave New Coin’s Ethereum and Bitcoin Liquidity Indexes – ELX and BLX. Now, they are all part of the Nasdaq Global Index Data Service.
The launch of cryptocurrency indices is evidently noteworthy because it plays right into the mass acceptance of virtual assets. Specifically, the institutional traders who may have been on the sidelines are getting attracted towards the digital asset space with the launch of each index.
Furthermore, the launch of the indices might lead to regulatory approval for cryptocurrency-based derivatives in the market, as per the previous media reports.
Notably, the Brave New Coin’s XRP index addition will permit users to follow the price of XRP with comparatively greater transparency than before, as per Nasdaq. XRP, with a market cap of roughly $12 billion is presently the 3rd largest virtual asset behind Bitcoin and Ethereum.
The XRP Liquid Index has several features that make it ideal for settlements and accurate spot pricing. This includes 30-second intraday pricing, end-of-day OHLCV, and time and volume-weighted-averages, according to Nasdaq.
The XRP Index will make available a real-time spot or reference rate for the price derived from the most liquid parts of the global market, similar to its Bitcoin and Ethereum indices. It is to be noted that XRPLX might serve as the base price of XRP for regulated investment vehicles in the long term.
It is to be noted that Nasdaq indices are not concentrated in a little faction of exchanges or OTC exchanges. Rather, the Nasdaq indices take into deliberation all platforms processing cryptocurrency and digital asset trades and find a trustworthy spot price.