Nasdaq happens to take the second position in the world for the largest stock exchange and guess what? They are working towards unveiling a Bitcoin futures market come 2019, during the first quarter.
Bloomberg’s sources have provided information stating that Nasdaq has been working to obtain regulatory approval from the Commodities and Futures Trading Commission (CFTC) to have the right to operate a futures market for cryptocurrency.
According to the report;
“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.”
The Influence Bitcoin Should Expect From Nasdaq And Bakkt
ICE is the company that birthed the New York Stock Exchange and also the company behind the cryptocurrency exchange named Bakkt, which is anticipated to activate a futures market for Bitcoin come January 24.
Bitcoin futures was delayed by the company on the 20th of November, stating that it didn’t put into consideration the sudden rush demonstrated by the masses for their futures product. Bakkt, therefore, requested for more time to properly prepare to cater for a larger number of US-based investors.
“ICE Futures U.S., Inc. will list the new Bakkt Bitcoin (USD) Daily Futures Contract for trading on trade date Thursday, January 24, 2019, subject to regulatory approval. The new listing timeframe will provide additional time for customer and clearing member onboarding prior to the start of trading and warehousing of the new contract,” As announced by Bakkt.
Presently, the evaluation of the crypto demand made by institutional investors can only be addressed with the provided numbers from major over-the-counter (OTC) markets such as Goldman Sachs, Bakkt, BitGo Custody, Fidelity Digital Assets, Coinbase Custody and many more.
For the fact that Nasdaq entered into a market with downtrend and bear market characteristics, it goes a long way to show that the company has confidence in the U.S market and has also observed an adequate amount of institutional demand from it. A large corporation such as Nasdaq would not invest its resources to build a new value class if it were not sure of absolute success.
Therefore, in 2019, a lot is to be expected in the crypto market depending on how Nasdaq’s plans are executed. As from the second quarter of the year, it may be possible to see the two biggest stock exchanges, Nasdaq and NYSE controlling the Bitcoin futures market.
Bakkt aims to make the delivery of Bitcoin more physical which will surely influence its price as well as its supply. The complex aspect of the plans put in place by Nasdaq remains unknown but what is known is the possibility of the two markets providing more asset liquidity.
The Concerns Shown By SEC
The SEC, U.S. Security and Exchange Commission has persistently maintained that the futures market cannot handle large-scale investments after the rejection of exchange-traded funds (ETFs) in August.
This position held by SEC is expected to change 6-12 months from now, and that is only possible if Nasdaq and Bakkt can prove a genuine strong request from local investors.