Published: Thu, November 29, 2018
Markets | By Otis Pena

Nasdaq May Soon Launch Bitcoin Futures in 2019

Nasdaq May Soon Launch Bitcoin Futures in 2019

The news implies that the Nasdaq, which has a market capitalization of $10 trillion, believes digital currency prices might recover - even though over $700 billion has been wiped off of the crypto asset market since the beginning of 2018.

As well, over the past year, during the public consultation processes, the SEC has been conducting while it considers approving Bitcoin exchange-traded funds (ETFs), the regulator has been repeatedly warned about poor integrity and manipulation in underlying Bitcoin spot markets.

"What we might look at is more of a total return futures, so it's a little bit of a different construct".

This injection of institutional investment could be the catalyst that turns Bitcoin and cryptocurrency markets around. About a week later, CBOE's Chicago-based rival, CME Group followed suit by launching its own Bitcoin futures product.

The presented content may include the personal opinion of the author and is subject to market condition.

Are you hopeful for the future of cryptocurrency markets in 2019? The author or the publication does not hold any responsibility for your personal financial loss. Do futures markets have any effect on Bitcoin's long-term viability as an asset?

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CryptoGlobe reported on Tuesday that Nasdaq still plans to launch bitcoin futures despite a delay in the release schedule. He also notes that the control system SMARTS developed by Nasdaq will be used for new derivatives. VanEck is also carrying out its own process to obtain the approval for Bitcoin ETFs from the SEC, a decision that the entire crypto community is waiting for.

As reported by Bloomberg, the US stock exchange will push ahead with the plans despite the current crypto market performance that has seen bitcoin prices drop to a low of about $3,400, nearly 80 percent down on its peak.

These are cash-settled futures contracts which means that there is no need to move physical Bitcoins for settling these accounts on their expiration.

That's the main difference between what Goldman Sachs is offering, and what the Nasdaq is shaping up for.

In early November, Bank Morgan Stanley published a report in which he called bitcoin "gold mine for institutional investors". Many fear that if this is not a physically settled product, it will not be good for cryptocurrency and could have a detrimental effect on the price of Bitcoin. If that's the case then for the short-sighted, bitcoin these days seems like it could be ripe for the big money to start flowing in 2019.

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