Nasdaq Vice President Joseph Christinat confirmed that the stock exchange would launch Bitcoin Futures in the first half of 2019, pending regulatory approval by the CFTC. Traditional banking institutions have become increasingly open to the inclusion of the emerging asset class. Nasdaq is preparing the launch of Bitcoin Futures for most of 2018 after years of studying the asset class. Bitcoin Futures will be listed and it should be launched in the first half of next year, Nasdaq is waiting for the approval of the CFTC, but it has worked hard enough on this issue to make it academic. Nasdaq has seen a lot of speculation and there are rumors about what it could do, but nobody has thought to come and ask Nasdaq if it can confirm it, so they’re going ahead with it.
Bitcoin Still Struggling
While Bitcoin is currently fighting at $ 4,000, the biggest cryptocurrency in the world was worth triple exactly one year ago. The extraordinary volatility has attracted many traders and investors. The institutional side of the market has shown a lot of interest, especially since 2018, but Nasdaq has been invested in the sector since years ago, said Christinat. Nasdaq went into the blockchain game five years ago and when the technology came in, it embraced it with open arms. It has put a tremendous amount of money and energy into doing this and it has been in control for along time – long before the market got moving, and it will not affect the timing of that in any way. Chris Beauchamp, the Chief Market Analyst at IG Group, said he praised everything that widens the Bitcoin’s liquidity and encourages usability. David Cheetham, a Market Analyst at XTB, a UK-based broker, believes Nasdaq’s quotation of Bitcoin Futures would be a form of legitimization of the cryptocurrency market, which would change the game in terms of acceptance. In general, there is always a risk in managing unregulated spaces. Nasdaq therefore much prefers to use futures and this can even create a serious strength in the market.
Speculation existed for quite some time
Rumors about Nasdaq’s intention to list Bitcoin Futures in early 2019 appeared at the end of November. The news came out almost a year after Nasdaq announced its intention to do so. A lot has happened since then. The price of bitcoin soared to its biggest drop in a year, in absolute terms. The listing of Bitcoin Futures by and CBOE Global Markets Inc and CME Group Inc. was one of the main drivers of the explosive Bitcoin rally in late 2018.
NYSE Also Interested
The New York Stock Exchange (NYSE) operator postponed the launch of its bitcoin futures platform until January 2019. Intercontinental Exchange (ICE), a Fortune 500 company that operates global exchanges, including the Atlanta-based NYSE,announced recently that its Bakkt trading platform would be postponed to a deadline of January 24, 2019, pending all regulatory approvals. Given Bakkt’s interest and the work required to put all the elements in place, it will now target January 24, 2019, for its launch to ensure its participants are ready to trade from day 1 said Kelly Loeffler, the CEO of Bakkt. The platform had previously scheduled a launch date of December 12, 2018, for its daily futures contract for Bakkt Bitcoin. She also added, however, that with product launches, new processes, risks, and mitigation measures will have to be tested and re-tested, and in the case of cryptography, a new asset class to which these resources are being applied, so it makes sense for it to adjust its schedule as it works with the industry for the launch.
In this recent Bakkt announcement, Loeffler said the platform was working closely with the United States Commodity Futures Trading Commission (CFTC) in the Bakkt futures and warehouse review.