Nasdaq Reportedly Looking into Bitcoin Futures Despite Plunging Prices 🚨 This article is 6 years old...
Nasdaq Reportedly Looking into Bitcoin Futures Despite Plunging Prices
2 min read
Updated: Nov. 7, 2019 at 2:53 am UTC
Photo by Coline Beulin on Unsplash
The world’s second largest stock exchange, Nasdaq, is reportedly planning to introduce a Bitcoin futures market within the first quarter of 2019.
The Bitcoin market has plunged by more than 80 percent across the spot markets, data from CryptoSlate has shown, but it hasn’t deterred the world second largest stock exchange from eyeing the lucrative industry.
According to a Nov. 27 report from Bloomberg, the Nasdaq Stock Market is reportedly looking to list Bitcoin futures on its exchange as early as 2019. Two people familiar with the matter told the publication that Nasdaq was betting on sustained interest despite the cryptocurrency’s dramatic plunge over the past year.
The unnamed sources claimed that Nasdaq has been working to satisfy the concerns of the CFTC before launching the contracts. And while the New York exchange operator was first reported to be eyeing Bitcoin futures back in 2017, one of the sources said that the company won’t begin trading until the first quarter of 2019.
The report comes almost a year after Nasdaq announced its plans to introduce bitcoin futures back in November 2017. At the time of the announcement, bitcoin’s price was experiencing a never before seen high, soaring to $11,000.
The company planned to take price references from numerous spot exchanges for their bitcoin futures as compiled by VanEck Associates Corp. At the time, Adena Friedman, the chief executive officer at Nasdaq, said that this approach would make Nasdaq’s bitcoin contract different from its competitors.
Nasdaq Presents Another Case for Institutional Demand
Stepping into a long-lasting bear market suggests that Nasdaq sees sufficient institutional demand for bitcoin futures in the U.S. Currently, the demand from institutional investors for crypto can only be evaluated through the numbers that Bakkt, Fidelity Digital Assets, Goldman Sachs, BitGo Custody, Coinbase Custody, and other major OTC markets can provide.
However, as developing infrastructure for a new asset class requires allocating a large portion of an exchange’s resource, it’s safe to say that Nasdaq seems certain that the demand for its futures will grow over time.
Depending on the delivery of Nasdaq’s plans, the cryptocurrency market could have both Nasdaq and the New York Stock Exchange operating bitcoin futures markets as soon as the second quarter of 2019.no
Bakkt, a cryptocurrency exchange built by ICE, the parent company of the New York Stock Exchange, is also expected to launch its Bitcoin futures market on January 24. As Bakkt physically delivers bitcoin to its investors and as such, it could have an actual impact on the supply of the coin and ultimately its price.
And while the details of Nasdaq’s plans still remain unclear, the increased competition by the two exchanges could lead to an increase in additional liquidity for the asset, something the market desperately needs.
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Bakkt
Bakkt is a new company of NYSE-operator InterContinental Exchange (ICE) designed to bring digital assets to the mainstream and help unlock the potential of this important technology.
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
Goldman Sachs
Goldman Sachs a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
BitGo
BitGo is a market leader in institutional-grade cryptocurrency investment services, providing institutional investors with security, compliance, and custodial solutions for blockchain-based currencies.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
