Nasdaq stock exchange has associated with New Zealand based Blockchain data company Brave New Coin to add Bitcoin (BTC) and Ethereum (ETH) indexes. The second largest stock exchange in the world declared on its website that it will send real-time Bitcoin and Ethereum index level data on the Nasdaq Global Index Data ServiceSM (GIDS) from February 25th.
What are the new indexes?
The two indexes are Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX). They both are planned to present a real-time scene or implication rate for the price of 1 BTC and 1 ETH respectively, priced in USD, and based on the most liquid outcomes of their markets. Both indices are determined by applying a methodology that has been separately examined against important IOSCO policies. The BLX is one of the most popularly referenced BTC indices among crypto merchants and has been estimated back to 2010. Furthermore, the ELX has been calculated back to 2014.
Active from Monday, February 25, 2019, data beneficiaries will obtain real-time index data from the exclusive GIDS data feed with the following attributes:
Nasdaq and Cryptocurrencies
Nasdaq has adopted a frequently positive strategy to cryptocurrency relevant commodities and co-operation, especially over the past year. In the month of November 2018, the stock exchange had announced that it is planning to launch a Bitcoin futures market within the first quarter of 2019 and that these plans are pushing to go ahead despite the crypto crash.
Nasdaq has been communicating with the Commodities and Futures Trading Commission (CFTC) to obtain regulatory permission to work as an acquiescent cryptocurrency futures market operator. The U.S. Commodity Futures Trading Commission (CFTC) is an autonomous bureau of the US government founded in the year 1974, that regulates futures and options markets.
In the month of January 2019, Adena Friedman, CEO of Nasdaq Inc had said that cryptocurrency “deserves an opportunity to find a sustainable future in our economy. According to Friedman, the invention misses gaining widespread confirmation and its financial applications as a means of exchange are limited.
Nasdaq CEO further elaborated that it’s been more than ten years since bitcoin was invented. With numerous fighting cryptocurrencies striving for investor recognition, the realm of “crypto” has gone through the initial stage of the exemplary discovery lifecycle, characterized by initial explorers, accompanied by hype, supported by the generation of rookies and then a dose of truth.
The CEO explained that for cryptocurrencies to develop into a functional, robust design with a constant value it needs governance and administrative transparency. She also recommended that both of these are, at their focus and opposite to the primary purpose of a decentralized, uncontrollable global currency.
To date, these bitcoin futures are the broader market’s only idea, regulated crypto investments. With beliefs of growing the crypto market’s institutional-tier contributions in 2018, the trade remains to seek U.S. Securities and Exchange Commission permission for a bitcoin ETF, an investment medium that many thinks could attract capital from Wall Street to invest undeviatingly into bitcoin.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The cryptocurrency market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.
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