CoinDesk Adds Coinbase and itBit to Bitcoin Price Index

Jul 21, 2015 at 16:01 UTC
Updated Aug 21, 2015 at 10:09 UTC

CoinDesk is pleased to announce the addition of Coinbase and itBit to its Bitcoin Price Index (BPI).

First launched in September 2013, CoinDesk’s BPI provides the most accurate bitcoin price using an average from the world’s leading exchanges.

Boasting a BTC/USD combined trading volume of approximately $3.6m in the last 24 hours, Coinbase and itBit join previously approved exchanges Bitstamp, Bitfinex, BTC-e and OKCoin.

Jon Matonis, editorial board member at CoinDesk, commented on the integration:

“Coinbase and itBit have each demonstrated consistent volume and growth over a significant period of time to warrant inclusion in the CoinDesk BPI. Additionally, they have met or exceeded the minimum stated criteria for exchanges to be considered.”

Matonis added the inclusion was not expected to have a major impact on the reported index value, given that both itBit and Coinbase trade fairly in line with the existing components.

“However, one immediate benefit is that companies and services relying upon the CoinDesk BPI will have a more robust, representative index that is less likely to be dominated by a single regional exchange house and less subject to market anomalies,” concluded Matonis.

To join the Bitcoin Price Index, bitcoin exchanges are required to submit a questionnaire and meet specific industry criteria; including servicing an international customer base and allowing minimum trades of less than $1,500 or equivalent.

Industry validation

The inclusion of Coinbase in CoinDesk’s BPI comes after the New York Stock Exchange (NYSE) based its bitcoin price index on transactions taking place on Coinbase’s exchange.

Adam White, vice president of business development at Coinbase, said:

“Including Coinbase in the CoinDesk BPI represents another step forward in the continued adoption of bitcoin and related technologies into the financial system, and helps provide further transparency to the bitcoin ecosystem.”

In May, itBit became the first bitcoin exchange credited with receiving a trust company charter from the New York State Department of Financial Services (NYDFS).

Commenting on the rationale behind itBit’s addition into CoinDesk’s BPI, marketing director Ben Pousty said: “As the first and only regulated bitcoin exchange available to US customers nationwide, as well as traders around the world, itBit is a trusted platform within the industry.”