NASDAQ, an American stock exchange market and the second-largest exchange in the world by market capitalization, is planning to offer bitcoin futures using a different approach from what its competitors have followed.
This was confirmed by the President and CEO NASDAQ, Adena Friedman, following an earlier report that Nasdaq is looking into bitcoin futures but did not give a timeline for a launch. Though her comments suggest that the development of a product is indeed happening.
According to Friedman, NASDAQ is investigating the idea of cryptocurrency futures (contract) with a partner. We are looking at the risk management around that. We are putting the right protocols in place for proper demand.
NASDAQ is looking to offer a future contract that is totally different from what its counterparts Cboe and CME Group did in December 2017.
“Cboe and CME offerings operate by tracking the price of bitcoin and operate in reference to its future price. NASDAQ may look at more of a total return futures which is a little bit of a different construct”. It meant it was “more of an investment than a tracking stock”. This suggests the product might track a spot rate rather than any 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),” she said.
Despite the sinusoidal movement of bitcoin since 2017 and the negative comments given by analysts including J.P. Morgan CEO Jamie Dimon who famously called bitcoin a “fraud”. Since many are still hopeful that 2018 would be a great year for the cryptocurrency.