New York-based National Association Securities Dealers Automated Quotations (Nasdaq), the world’s second largest stock exchange, has confirmed that it will be listing bitcoin futures by next year.
BTC futures contracts will be subject to approval from the US Commodity Futures Trading Commission (CFTC), however, when introduced to the market, they could help further drive cryptocurrency adoption (or not).
BTC Futures “Will Happen”
“Bitcoin futures will be listed and [they] should launch in the first half of next year – we’re just waiting for the go ahead from the CFTC but there’s been enough work put into this to make that academic.”
Christinat added that there has been a lot of speculation and rumors regarding what the $10 trillion (by market cap) exchange may be planning – as far as BTC futures and other crypto-related products are concerned.
Entering The Blockchain Ecosystem
Christinat further noted that Nasdaq got into the “blockchain game” five years back and that the exchange had “put a hell of a lot of money and energy” into preparations involving launching BTC futures and other products. He also said Nasdaq’s team had been working on the project “before the [crypto] market went into turmoil, and that will not affect the timing of this in any way. No. Period. We’re doing this no matter what.”
David Cheetham, a UK-based broker and experienced market analyst, believes that the introduction of Nasdaq’s BTC futures contracts will be a “game changer” – as it may help accelerate bitcoin adoption.
“It sounds like Nasdaq have obviously been working on it for quite … this is a serious plan.”
He believes this is a sound business strategy – as the main revenue stream for exchanges comes from trading volumes and, while large volumes in the cryptocurrency market have not returned due to the extended bear market, Nasdaq’s BTC futures could help bring back some of the high trading activity seen in late 2017/early 2018.
According to Cheetam, the crypto space is still “unregulated” and Nasdaq’s BTC futures contracts could potentially help create “solidity” in the digital asset market.
BTC Futures Could Help “Broaden Out Liquidity”
Chris Beauchamp, the senior market analyst at the IG Group, thinks BTC futures will bring more stability to bitcoin – which has notably dropped below the $4,000 mark, after reaching record-level highs of nearly $20,000 in December of 2017.
“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.”