The NASDAQ is trying to figure out if there’s a way to offer cryptocurrency futures that stand completely unique when compared to other futures being offered by its competitors.
Adena Friedman, the CEO of NASDAQ has confirmed officially that they’re considering an opportunity to offer Bitcoin futures. However, a final date or a timeline for the project was not shared by the CEO. Currently, the NASDAQ is assessing the viability of offering the futures and is looking into the risk management matters.
Friedman stated that the NASDAQ needs to check that the right protocols are put in place. Also, the demand for such future contracts needs to be assessed beforehand.
The Doubts Involved
The NASDAQ will have to see if it’s the right and wise thing to do, offering Bitcoin futures.
There are recent incidents that complicate the process of smooth decision making in this regard.
In 2017 Bitcoin enjoyed soaring high and being traded at excellent prices, but since the start of 2018, it has taken a dip. Not just Bitcoin, all cryptocurrencies suffered a major blow at the start of this year due to the wrongly assumed South Korean ban on cryptocurrency trading.
Moreover, there are big names in the industry that have proclaimed Bitcoin a scam. The CEO of J.P. Morgan Jamie Dimon called Bitcoin a fraud last year. The famous investor Warren Buffett said in his interview with CNBC that all the digital currencies will come to a bad ending. The declining prices of Bitcoin and the predictions of such big institutions have delayed the preparation of NASDAQ’s feasibility report for issuing Bitcoin futures.
The Positive Hope & Competition for NASDAQ
There is a hope for Bitcoin to revive its value in 2018 as it is being predicted by several institutions. Julian Hosp, co-founder of TenX shared his analysis in December that Bitcoin would reach $60,000 in 2018, but it would first crash.
And it did crash.
So, maybe the other half of the analysis also comes true. Similarly, Dave Chapman, the managing director of Octagon Strategy – a cryptocurrency trading firm – has said that Bitcoin would reach $100,000 in 2018. However, if NASDAQ decides to go with their Bitcoin futures they’ll face a strong competition by similar contracts being offered by Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME).
The Coins NASDAQ Wants to Offer Futures In
It was recently asked by the CEO of NASDAQ whether they’re considering launching futures just for Bitcoin or any other currency as well.
Adena Friedman replied positively and said that NASDAQ has two exchange traded notes listed in their Nordic markets, Bitcoin ETN and Ethereum ETN. This means NASDAQ is considering a more holistic offering of futures and not just for one cryptocurrency.
The NASDAQ first started talking about offering future contracts in November 2017. At that time the date for the planned launch of futures was somewhere in June 2018. However, these recent events that have crippled the digital currency for the time being have made the NASDAQ to go over their planning once again. Even if NASDAQ’s planning takes time, it has been made clear by them that they do believe that cryptocurrencies have an integral role to play in the global economy.
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