NASDAQ to List Bitcoin Futures

A recent report published at Bloomberg says that NASDAQ (world’s second-largest stock exchange) is planning to list Bitcoin Futures in the next few months.

NASDAQ asks Commodity Futures Trading Commission (CFTC) for BTC Futures Approval

Bloomberg’s report cited anonymous sources to say that NASDAQ is in discussion with Commodity Futures Trading Commission (CFTC), the futures regulator of the United States, to get approval for launching its cryptocurrency based futures products. If the sources are to be believed, the renowned stock exchange is all set to introduce its Bitcoin Futures by the first quarter of 2019. However, NASDAQ hasn’t yet officially announced anything about it.

Bloomberg has published the news at a time when Bitcoin price is creating new lows regularly, especially after the crypto market meltdown on November 14, 2018. It shows that NASDAQ is still bullish on the largest cryptocurrency of the world in terms of market capitalization.

NASDAQ Plans Bitcoin Futures

Is this a New Development?

Nasdaq Inc first revealed its plan to list Bitcoin Futures on NASDAQ stock exchange in November 2017. Though at that time it planned to make the listing live by mid-2018, the dates were pushed back.

During 2017-end, Cboe Global Markets Inc. and CME Group Inc launched their own futures contracts back in December 2017 to get the best out of cryptocurrency craze. Though their main aim was to bring in institutional investors and High Net-worth Investors (HNIs), the response from traditional investor community turned out to be pretty ordinary. However, the main reason for such a poor performance of the futures market is mainly extreme volatility in the spot market of BTC.

To avoid such scenario, Adena Friedman (CEO of NASDAQ) said at the beginning of 2018 that they might offer Bitcoin Future in a different manner than what has already being offered by both CBOE and CME.

NASDAQ Competitors also Plan to Introduce Bitcoin Futures during Early-2019

Intercontinental Exchange (ICE), one of the closest competitors of NASDAQ, has announced launching its Bitcoin Futures on January 24, 2019. In a press release, it said:

“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 the customer and clearing member onboarding prior to the start of trading and warehousing of the new contract.”

Many market analysts believe that the cryptocurrency market will continue its downtrend for now and will bottom near the US$3000-level. After that, it’ll bounce back. In Q1 2019, the crypto market is expected to make significant gains, triggering the entry of institutional investors. With this projection in mind more and more stock exchanges are joining the bandwagon of launching their cryptocurrency based futures contracts.


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