Bitcoin, the most prominent cryptocurrency has recently topped with the all-time new high record of $10,000. According to CoinMarketCap Thursday 30th Nov, the bitcoin was trading $10,428.60.
Nasdaq is joining CME, CBOE and other companies hoping to help investors trade Bitcoin futures, by launching a Bitcoin futures contracts in the second quarter of 2018 according to exchange officials. It is the second largest stock exchange by market capitalization.
The announcement comes a fortnight before CME launches its futures contract on December 11.
However, Nasdaq will differentiate its products from the CME Group that is launching its futures contracts on December 11. It will base its price off of 50 Bitcoin sources from all around the world.
Bitcoin futures by CME is based on CF Bitcoin Reference Rate (BRR). Therefore, it considers a day reference rate of US dollar of bitcoin price that takes from 4 bitcoin exchanges.
Nasdaq has not set a particular date for launching the contract.
“Nasdaq’s Bitcoin futures contract would debut on Nasdaq Futures or NFX, a marketplace that the New York-based exchange group launched in 2015 that until now has mainly focused on energy trading, according to the people familiar with the situation,” read a report from the company.
The source said Nasdaq has partnered with VanEck, NY money manager, to in the futures contract project. Thus, the OCC (Options Clearing Corporation) is to clear all the Nasdaq futures products.
The futures will be hoping to deal with some problems in crypto volatility amidst many challenges such as hard forks. Nasdaq said in case of a hard fork, both sides of the fork would go in the index for one day. After that, the value of the other fork would be reinvesting in Bitcoin and the value of the index would be adjusting.