The second largest stock exchange in the world, Nasdaq plan to launch a bitcoin futures market in 2019. According to verified sources, the exchange is in the final phase of creating the futures market and plan to launch it in the first quarter of 2019.
Nasdaq Bitcoin Futures Market
As reported by CCN and other news outlets online, the company has been working closely with Commodities and Futures Trading Commission (CFTC) to get regulatory approval. Accreditation will help it operate as a fully-fledged cryptocurrency futures market platform.
Notably, New York Stock Exchange was actively involved in development of Bakkt, a cryptocurrency exchange that is expected to be launched and operate as a bitcoin futures market on January 2019. The company delayed listings bitcoin futures on the platform due to the unprecedented increase in demand for futures product across the globe. Bakkt management told the press that they needed more time to put in place the required infrastructure to provide services to the large number of investors here in the United States.
Reports indicated that ICE Futures United States Incorporation will include the Bakkt Bitcoin USD Daily Futures Contract on January 24, 2019. However, this is dependent on whether the company will get the required approval and accreditation from the financial regulator.
It is also important to note that the new listing timeframe will provide the much-needed extra time for clearing member onboarding process before they start trading. The additional time will also facilitate warehousing of the new contract.
At the time of writing, one can only evaluate the demand for bitcoin futures and other cryptocurrencies by looking at the numbers provided by companies such as BitGo Custody, Fidelity Digital Assets, Bakkt, CoinBase Custody and Goldman Sachs.
Bear Market and Down Trend of the Market Not Discouraging
Nasdaq and many other institutional investors are not discouraged by the bear market that has lasted for more than two months now. The downtrend in prices of most cryptocurrencies suggests that the company interprets it as a sign of sufficient institutional demand in the current United States cryptocurrency market.
This is based on the fact that a large company such as Nasdaq is very cautious investment decisions. It would not set aside huge amounts of funds and resources to develop a new asset class infrastructure unless it is confident that its demand will increase over a particular period of time.
Successful deployment of Nasdaq plans could catapult both NYSE and Nasdaq to the top. The two will be considered the largest stock exchange platforms in the world to accommodate and offer a bitcoin futures market. Finally, Bakkt could have a significant impact on the price and supply of Bitcoin in the world since it delivers the Bitcoin to its investors directly. Even though Nasdaq plans are not yet clearly defined, the entry of the two companies in the market could result in an sharp increase in liquidity of the digital asset.