Nasdaq Inc. ‘Still Evaluating’ Options for Launching Bitcoin Future Contracts

The word is already out in the crypto market that Nasdaq Inc. plans to launch its own Bitcoin Futures this year in 2018. However, the tentative timeline for the launch still remains undecided at this point in time, but the launch is definite to happen!

Recently, while giving further insight into its plans, Nasdaq CEO Adena Friedman said that the exchange operator is weighing different options as to how it can create something different from what is already been offered by CBOE and CME Group.

While talking to CNBC, Friedman said that Nasdaq’s Bitcoin futures are currently under the development stage. She said: “We are continuing to investigate the idea of a cryptocurrency futures (contract) with a partner and we continue to look at the risk management around that, making sure we are putting the right protocols in place, making sure there’s proper demand, and that the contract is different from what’s already out there.”

Several financial institutions are looking ways to monetize on the current craze within investors for different cryptocurrencies. CBOE who already has Bitcoin futures contract trading in the crypto market is planning for a similar product for other cryptocurrencies which it believes to have a long-term potential value. Friedman said: “Our view is that digital currencies and cryptocurrencies will have a role in the global economy.”

CBOE and CME Group already have their Bitcoin futures which operate by tracking the price of the cryptocurrency and also its price in the future. During an interview at The Sanctuary in Davos, Friedman said that Nasdaq’s offering for its futures contract will be a bit different from this.

She said: “What we might look at is more of a total return futures, so it’s a little bit of a different construct.” She further continued saying that “more of an investment than a tracking stock.” This could possibly mean that the product is more likely to track the spot rate rather than tracking the future price.

“We will have to see whether it makes sense at the end of the day, proper client demand, and on a risk-management side ‘do we feel confident?,’ in which case we would look to go to the CFTC (Commodity Futures Trading Commission),” said Friedman.
 

Bitcoin had a phenomenal run last year in 2017 while touching an all-time high around $20000. However, over the past one month, Bitcoin has been facing still a stiff competition from other altcoins like Ethereum, Ripple, Litecoin and others. Moreover, Bitcoin has corrected almost 50% from its peak and is currently trading around $11,500 levels.

The opinion of different analysts still remains divided about Bitcoins future and its long-term price. It would be interesting to see how the Bitcoin story unfolds ahead this year, especially the progress with Bitcoin’s ongoing scalability issues.