Markets

Nasdaq Could Offer Bitcoin Futures In 1Q19

Nasdaq Could Offer Bitcoin Futures In 1Q19

Nasdaq Inc.is progressing with a plan of listing Bitcoin (BTC) futures, according to two people acquainted with the matter, betting on continuous interest despite crypto's dramatic fall over the past 12 months.

According to the unnamed source, the Nasdaq derivative price will be compiled by VanEck, an investment management firm based in NY that also seeks to offer a bitcoin exchange-traded fund (ETF).

Back in January, Nasdaq Chief Executive Officer Adena Friedman said the exchange was weighing how to distinguish its plans from contracts already offered by competitors.

The second-largest stock exchange in the world is partnering with investment management firm VanEck to bring a host of new cryptocurrency financial products to market. Gurbacs mentioned that by employing SMARTS and the MVIS asset indices they wished to gain the confidence of the regulators and institutions with regard to the crypto market.

The news comes at a time when Bitcoin, world's largest cryptocurrency by market cap, has tanked to the lowest level of 2018, changing hands at $3,750. Gurbacs said that the technology would ensure fair trading of Bitcoin futures in the market.

One thing we don't yet know about the Nasdaq bitcoin futures is how the contracts will be settled.

CME and Cboe brought their Bitcoin's futures into the market via their self-certified process in December a year ago.

Note that the decision of the USA securities and exchange commission (SEC) on the ETF provided with physical bitcoins, developed by VanEck in partnership with the blockchain company SolidX, should be made by February 27, 2019.

Nasdaq to start offering bitcoin futures
Bitcoin [BTC] Futures to be launched by Nasdaq in Q1 of 2019

Forget the plunging prices, Wall Street is still thirsty for bitcoin and cryptocurrencies.

According to the President of Fidelity Tom Jessup, market analysts, hedge Fund managers and family offices capital actively engaged in the development of crypto products and tools.

On the other hand, a simultaneous bitcoin futures product anticipates launching in January next year.

What Impact Will Nasdaq Plus Bakkt Have on Bitcoin?

Apart from that, VanEck has been struggling to secure approval from the SEC for a crypto-based ETF.

"We believe that 2018 was the year of regulation and 2019 will be the year of implementation."
Mr Clayton was skeptical whether the Bitcoin ETF would be approved until there the underlying markets were "free from the risk or significant risk of manipulation".

If the price of bitcoin is much higher than $6,000 on the date of expiry, I get my bitcoin at a huge discount to the market.

Bakkt is a cryptocurrency exchange platform, backed by the parent company of the New York Stock Exchange.