Nasdaq To Launch Bitcoin Futures Market
In this ever-increasing crypto-currency market, the news that popped up is “When Nasdaq to launch Bitcoin futures market”.
Yes, the world”s second-largest stock exchange Nasdaq is in planning to introduce a Bitcoin futures market within the first quarter of 2019.
Sources reported Bloomberg on November 27, 2018, that Nasdaq has decided to cooperate with the Commodities and Futures Trading Commission. Nasdaq is doing this to garner regulatory approval to operate as a complaisant crypto-currency future market operator.
The report is to read:
“Nasdaq has been working all the way to satisfy the concerns of the US’s main swaps regulator that is The Commodity Futures Trading Commission, before launching any contract. The New York exchange operator wants to approve trading in the first quarter of 2019, one of the people said.”
Back in February, the CFTC had strengthened its review process regarding crypto-currency futures products. The new checklist pertaining to Designated Market Contracts and Derivatives Clearing Organizations aim to provide assistance to regulators. That is inevitable, the reason being, exchanges will introduce new crypto-currency products onto the market.
The Nasdaq contracts
The Nasdaq contracts listing is based on Bitcoin’s on the spot price on numerous exchanges. The New York-based investment management entity will compile VanEck. Nasdaq was first disclosed to be preparing to provide Bitcoin futures products in November of the previous year.
The first Bitcoin futures contracts had hit the markets almost a year ago with offerings from CBOE and CME Group. Arriving as Bitcoin prices raised to their all-time high near to $20,000 in December.
The International Exchange (ICE) has announced recently to launch a physically-delivered Bitcoin futures product through a new exchange named Bakkt. The launch postponed from December 2018 to January 2019. That postponement happened due to “volume of interest” and work required to get all in place.
The Impact Nasdaq Plus Bakkt
Regulatory and other preparations forced the executives to delay the rollout by around six weeks. The Impact Nasdaq Plus Bakkt Have on Bitcoin Bakkt is a crypto-currency exchange built by ICE. It is the parent company of the New York Stock Exchange. It is going to launch its Bitcoin futures market on January 24.
Recently, on November 20, the company delayed the listing of Bitcoin futures that have cited an unforeseen
increase in the demand for its futures product in crypto. Bakkt also stated the need of additional time in preparing the infrastructure. All this needed to serve a large group of investors based in the US.
ICE Futures US Inc. will list the new Bakkt Bitcoin Daily Futures Contract for trading on Tuesday, January 24, 2019. The subject to approval. The new listing timeframe will provide additional time for the customer and also clear member on-boarding before starting trading and warehousing of the new contract” that Bakkt introduced.
The current demand from institutional investors for crypto evaluate through the numbers that Bakkt, Goldman Sachs, Fidelity Digital Assets, BitGo Custody, Coinbase Custody, and some major over the counter markets.
So the entrance of Nasdaq exchange in a long-lasting bear market. And news suggests that the company finds sufficient institutional demand within the US market. A conglomerate like the size of Nasdaq does not allocate resources to develop any infrastructure for a new asset class. So unless it is found certain that the demand for it is going to grow over time, Nasdaq will take precautionary steps.
Because depending on the Nasdaq’s delivery plan, by the second quarter of 2019, the crypto market could have Nasdaq and NYSE in the global market operating Bitcoin futures markets.
So the decision that Nasdaq to launch Bitcoin futures market can prove result-oriented for many businesses. businesses can also take benefit to this move in the crypto-currency world. That will also assist other countries to provide them with a basic platform to go in this way. To get more news and update in this market stay with us, that is going to happen in the crypto market.