The Nasdaq Stock Market, an American stock exchange is all set to launch Bitcoin futures despite the bear market. The world’s second largest stock exchange is preparing to launch a Bitcoin futures market within the first quarter of 2019 and that these plans are advancing to go ahead despite the recent crypto crash, reported Bloomberg.
According to Bloomberg, Nasdaq has been interacting 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.
The report stated:
Nasdaq has been working to satisfy the concerns of the U.S.’s main swaps regulator, the Commodity Futures Trading Commission, before launching the contracts, the people said. The New York exchange operator, which was first reported to be eyeing Bitcoin futures last year, wants to allow trading in the first quarter of 2019, one of the people said.
Impact of NASDAQ On Bitcoin
In the month of August 2018, ICE, Intercontinental Exchange had announced a global platform Bakkt for digital assets. ICE is the owner of the New York Stock Exchange (NYSE). It had announced that it will form a new company whose goal is to make bitcoin a mainstream financial asset. Bakkt is a platform that will act as a link between institutional investors and the crypto world. In this, the contracts on the platform will be covered by Bitcoin. This means that real bitcoins really have to be bought and kept for the length of the contract. This could lead to a supply shortage and thus stabilize the price with at least constant demand.
The company will utilize Microsoft cloud solutions to design an open and regulated cryptocurrency platform. The new company is also working with companies like BCG, Microsoft, Starbucks, and others, to design a unified platform that enables customers and to purchase, sell, store and spend digital assets on a seamless global network. Depending on the commitment of Nasdaq’s plans, by the second quarter of 2019, the cryptocurrency market could have Nasdaq and NYSE, two of the biggest stock exchanges, in the global market running Bitcoin futures markets.
According to CCN, the need from institutional investors for cryptocurrencies can only be assessed through the quantities that Bakkt, Fidelity Digital Assets, Goldman Sachs, BitGo Custody, Coinbase Custody, and other major over-the-counter (OTC) markets can present.
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.
Bloomberg further reported that Bitcoin futures has quickly charmed the financial world and brought stability from large derivatives brokerages when CME Group Inc. and Cboe Global Markets Inc. adopted an expedited self-certification method to deliver their contracts to market last December at the height of the global crypto craze. After CME and Cboe filed their contracts, the CFTC declared an enhanced inspection method for exchanges seeing to list virtual currency derivatives.
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