Nasdaq Exchange plans to introduce Bitcoin-based futures contracts in 2018, positioning itself as the third major U.S. exchange to enter the cryptocurrency market, following CME and Cboe Global Markets.
Key Details of the Launch
- Timeline: Targeted for Q2 2018, with trading on Nasdaq NFX.
- Market Context: Bitcoin prices surged past $11,000 this week, marking a 1,100% year-to-date increase.
- Historical Perspective: From 6 cents 7 years ago to under $1,000 at the start of 2017, Bitcoin's growth has been exponential.
Why This Matters
Cryptocurrency advocates argue that even marginal adoption by traditional financial markets—valued at $200 trillion globally—could drive significant appreciation.
Michael Novogratz, ex-hedge fund manager at Fortress Investment Group, predicts Bitcoin could reach $40,000 by end-2018.
U.S. Exchange Landscape
Three of the "Big Four" exchanges—Nasdaq, CME, and Cboe—are now venturing into crypto derivatives. Only Intercontinental Exchange (NYSE's parent) remains uninvolved.
👉 Learn how Bitcoin futures could reshape institutional investment
CME’s Earlier Move
In October 2017, CME announced Bitcoin futures for Q4, cash-settled via the CME CF Bitcoin Reference Rate (BRR). These contracts will follow CME’s standard trading rules and leverage data from Gemini Trust, a platform founded by the Winklevoss twins.
FAQs
Q: How do Bitcoin futures work?
A: They allow investors to speculate on Bitcoin’s future price without holding the asset directly, using cash settlement based on a reference rate.
Q: What’s the significance for traditional markets?
A: It legitimizes cryptocurrencies as an asset class and bridges crypto with institutional finance.
Q: Why is Nasdaq’s entry notable?
A: Nasdaq’s reputation adds credibility, potentially attracting more institutional players to crypto.