Nasdaq stock, the second-largest stock exchange in the world is coming together with an investment firm, VanEck. This partnership is carried out to introduce a set of new cryptocurrency products into the market.
The partnership was officially presented during CoinDesk’s Consensus: Invest Conference. Director of digital asset strategy, Gabor Gurbacs, announced plans of bringing a regulated crypto 2.0 future-type contract to the market.
Future Products An Upgrade To Improve Confidence
According to Gurbacs, the products to be released next year is the first of many such products. During another interview, the director also told CoinDesk that the future products would be an upgrade. This is due to the recent regulatory standards that have been labeled on bitcoin future products.
Nasdaq’s stock markets surveillance system (SMARTS) is a software that hosts hundreds of detecting algorithms. It automatically pick-up on suspicious market activity such as spoofing and wash trading. Gurbacs called it the “big policeman engine”.
They explain that the technology would carry out bitcoin future trades orderly and fairly. The advantage this system brings along with the trusted pricing benchmarks provided by MVIS will give confidence to institutions that would be joining.
Terms of the deal
Before now, the Commodity Futures Trading Commission (CFTC) had only approved two bitcoin future products. The first was the Chicago Board Options Exchange in conjunction with Gemini Exchange. The other was operated by the Chicago Mercantile Exchange in partnership with Crypto Facilities. These futures contracts were cash-settlement. This means that at expiration physical bitcoins might not move when settling accounts.
On the other hand, a simultaneous bitcoin futures product anticipates launching in January next year. This futures product is operated by the Intercontinental Exchange-backed company, Bakkt. It will be physically-settled, which means investors with these contracts at expiration would be paid in bitcoin.
Information about the expecting bitcoin futures product between Nasdaq and VanEck were not divulging. Neither Gurbacs nor representatives at Nasdaq speak on if the deal would be backing cash.
2019 is Promising
Gurbacs also added that “there are lots to look forward to in 2019”. There are also hopes about the launch date for the bitcoin futures product falling in the first quarter of next year.
In other news, the exchange-traded fund proposed by VanEck in conjunction with SolidX would be physically backed by bitcoin. SolidX will also make a final decision with the Security and Exchange Commission by February next year. Gurbacs predicts an exciting first quarter in the new year.
He said: “We believe that 2018 was the year of regulation and 2019 will be the year of implementation.”