Nasdaq Confirms Bitcoin Futures is Set for 2019
‘Bitcoin Futures will be listed and it should launch in the first half of next year… we’re doing this, and it’s happening.’
-Joseph Christinat, VP of Nasdaq media team
The preparations have been made. What’s left is the go signal from the Commodity Futures Trading Commission (CFTC). Nasdaq is set to list Bitcoin Futures which is said to invigorate the confidence of conventional banking in the cryptocurrency industry. The initiative will speed up crypto mass adoption.
According to Joseph Christinat of Nasdaq, the stock exchange had been interested in crypto for a number of years. They got involved with blockchain five years back. This year they worked profusely in the hopes of delivering BTC Futures to the market.
No other details on the futures, such as whether it will pay returns in fiat or in BTC, were given.
Transparent, Authorized and Supervised Bitcoin Futures
Late last month, 28 November, Gabor Gurbacs of VanEck announced the partnership between the firm and Nasdaq with the objective of providing a shield for investors against market manipulation. Nasdaq’s BTC Futures will reportedly use the Nasdaq SMARTS Market Surveillance software system together with VanEck’s MVIS Indices.
Market Analysts Talk About the Move
‘It sounds like Nasdaq have obviously been working on it for quite some time which means this isn’t a knee-jerk reaction or jumping on the bandwagon - this is a serious plan… this would be a form of legitimizing the market.’
-David Cheetham, XTB Market Analyst
‘Anything that broadens out the liquidity of Bitcoin and encourages usability is welcomed by brokers and traders alike. It will also bring more visibility and transparency to a market which has no regulation and, again, that will be broadly welcomed.’
-Chris Beauchamp, IG Group Market Analyst
Another Bitcoin Futures Slated for 2019
One of the highly anticipated Bitcoin futures contract is by the ICE-operated Bakkt set to launch on 24 January. ICE or Intercontinental Exchange operates a dozen regulated exchanges including the New York Stock Exchange.
Bakkt plans to allow its participants to trade from the very first day of launch.
Existing Bitcoin Futures
The first US BTC futures was launched on 10 December 2017 by CBOE Futures Exchange, LLC. The firm’s Bitcoin futures holds the ticker XBT and are settled by fiat money. The price index is based on the auction price found in Gemini’s exchange.
The next to launch a BTC futures contract was CME Group Inc. which launched the futures on 17 December 2017. CME’s Bitcoin futures carry the ticker BTC and, like CBOE, are cash-settled. The futures are indexed based on the CME CF Bitcoin Reference Rate (BRR). The BRR combines trading activities, timed from 3:00 pm until 4:00 pm (London time), from leading Bitcoin spot markets.