Nasdaq still plans to launch bitcoin futures despite plunging market

Andrew Cummings
November 29, 2018

"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".

Nasdaq is proceeding with plans to list a Bitcoin futures product on its exchange despite Bitcoin's waning fortunes in 2017, sources to Bloomberg say. Intercontinental Exchange Inc, the parent company of the New York Stock Exchange (NYSE) last week said that it would launch its own contracts on January 24, Bloomberg notes.

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.

The enthusiasm from NASDAQ is a good sign that the performance of Bitcoin has not deterred Wall Street from being involved in the crypto market.

Despite the bearish market winter, Nasdaq has stayed by its plans to open up the futures market with the expectation that interest in Bitcoin will only continue to rise.

Are you hopeful for the future of cryptocurrency markets in 2019? The primary reason for the bland performance of futures market was the volatility in Bitcoin spot market.

The nature of the Nasdaq Bitcoin Futures Contracts remains a surprise. Separately, VanEck has been attempting to win endorsement from the Securities and Exchange Commission for a crypto-based exchange-traded fund. NASDAQ had previously announced its intention to introduce Bitcoin Futures in the market, but given the bearish trend of 2018, the stock exchange paused the launching of the contracts.

These are cash-settled futures contracts which means that there is no need to move physical Bitcoins for settling these accounts on their expiration. Although it was said to be released in 2018, nothing came to fruition past year.

Nasdaq is not the only imminent BTC derivative.

And while the details of Nasdaq's plans still remain unclear, the increased competition by the two exchanges could lead to an increase in additional liquidity for the asset, something the market desperately needs.

Will the entry of institutional investors set the next Bitcoin rally?

Although the news is great for the crypto market, it has to be seen of the futures can help the bearish market to recover. This opinion is shared by the commercial Director of payment system Bitpay Sonny Singh, who is sure that these events will again raise the price of the asset in the next year, and for 2019 it will cost in the range of $15 000-$20 000.

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