ibusinesslines.com December 17, 2018

Nasdaq Plans to Pursue Bitcoin Futures Despite Plunging Prices, Sources Say

29 November 2018, 05:28 | Kelvin Horton

Nasdaq could launch Bitcoin futures in early 2019

Nasdaq May Soon Launch Bitcoin Futures in 2019

Major US stock exchange Nasdaq aims to launch its Bitcoin futures products in the first quarter of 2019, Bloomberg has reported.

"What I'd like to point out is we ran a few extra miles working with the [Commodity Futures Trading Commission] to bring about new standards for custody and surveillance", Gurbacs commented during a panel.

"The exchange was weighing how to distinguish its plans from contracts already offered by competitors", said CEO Adena Friedman, with Bloomberg now claiming that "The Nasdaq futures will be based off the Bitcoin's price on numerous spot exchanges, as compiled by VanEck Associates Corp".

In January, Nasdaq CEO Adena Friedman explained that the NY exchange was figuring out how best to distinguish their products from competitors.

This injection of institutional investment could be the catalyst that turns Bitcoin and cryptocurrency markets around. The clearing of any regulatory hurdles and receiving the blessing of USA authorities in cryptocurrency is definitely a positive step for the market.

The technology is called "big policeman engine" by Gurbacs, and he explains that it would make way for an orderly and fair Bitcoin futures trading. NASDAQ, ICE and VanEck could be the lifeline for Bitcoin - US regulators permitting. In comparison, CME uses prices from four markets, while CBOE uses only one. The days surrounding futures expiration are always prone to unusual price activity with scenarios like long squeezing, tending to exaggerate movements.

Nasdaq to start offering bitcoin futures

In January of this year, Nasdaq was evaluating the possibilities of offering bitcoin futures.

In the meantime, the crypto community is looking to the U.S Securities and Exchanges Commission (SEC), with the hope that the regulator will approve at least one of the several bitcoin ETF proposals before it.

"We believe that 2018 was the year of regulation and 2019 will be the year of implementation", said Gurbacs. The bitcoin price back then reached $20,000 and the industry's market cap topped $800 billion in January.

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.

In mid-November, the head of the crypto division of trading giant Susquehanna Bart Smith said that the launch of products from Fidelity and ICE will help increase the liquidity of bitcoin and draw in this space a significant amount that will have a positive impact on market development.

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