The massive US exchange Nasdaq, which is known for trading trillions in stocks, especially tech companies, has told select investors that they will be adding a Bitcoin future at some point in 2018. Just to be clear, this is the second-largest exchange in the world (behind the NYSE), and they will be adding in US derivative contracts that are linked to digital currency. This could be huge.
Information that is available now indicates that the exchange will track Bitcoin across 50 global exchanges in order to provide the most accurate futures product possible. The Bitcoin contracts will also clear with the US Treasury, and the Office of the Comptroller of the Currency, adding further legitimacy to the fund.
The futures contracts themselves are being developed by VanEck, a major New York-based money manager.
Alessio Bruni of Luno.com (a Bitcoin wallet provider) reported to Express.co.uk saying, “The vast majority of Bitcoin is traded on various platforms, which are incorporated in jurisdictions where Bitcoin isn’t currently regulated. Bringing Bitcoin (or Bitcoin futures contracts) to larger, regulated exchanges like Nasdaq, will ultimately bring more legitimacy to digital currencies and with it, an increase in institutional investor activity.”
While adding another futures market (two other significant futures markets for Bitcoin either exist or are planned already) does come with some potential issues. Futures markets like this have the potential to create a type of market manipulation that can make it more difficult for the prices to rise naturally. In addition, as institutional investors become more and more involved with Bitcoin, burdensome regulations and other obstacles are likely to follow.
Even those who oppose the idea of a Bitcoin futures market, however, will have to admit that having this type of exposure will almost certainly drive billions in new assets toward crypto in general, and Bitcoin specifically, which can’t help but put some upward pressure on the prices.