IC Markets

Nasdaq to Offer Bitcoin Futures Contract in 2018

NASDAQNASDAQ and the NYSE (New York Stock Exchange) have agreed to join the bandwagon of Bitcoin by announcing that they would be offering Bitcoin Futures in the year 2018. A source who is familiar with the dealing and wanted to remain anonymous said that NASDAQ in the second quarter of 2018 would introduce US derivatives contracts which will be linked to the virtual currency Bitcoin.

The trading for the Bitcoin Futures Contract will be done on the NFX market. This new plan from NASDAQ was announced after CBOE Holdings and CME Group declared their Bitcoin Futures in 2017. On Wednesday, this virtual currency set a high record by topping $11,000 just a few hours after it reached $10,000 mark. Bitcoin is regarded as the most popular and widely used cryptocurrency in the world, and it was able to increase its value to 10 times in the past 11 months.

Despite known for its volatile price, Bitcoin was able to witness exponential growth in the past few years, and the financial experts are going crazy. In August last year, CBOE Holdings along with Gemini Trust have jointly announced their venture for providing cash settled Bitcoin futures at the end of 2017 or early 2018.

CME Group which is regarded as the most significant exchange derivative in the world announced in October that this virtual currency future would be listed in their stock exchange all due to the popularity in the cryptocurrency market and rising interest among the clients.


When Bitcoin is going to be offered by three exchanges in 2018, NASDAQ would be slightly at a disadvantage position because of being a small player in the futures market. To compete with CME and CBOE, NASDAQ is going to join hands with VanEck Associates Corp which is a New York-based money manager to develop future contracts. They are going to work as once the pending clearance is authorised by the OCC (Options Clearing Corporation).

VanEck is going to supply pricing data to NASDAQ from 50 different sources. This will set NASDAQ from the plan of CME to pull from 4 sources and methods of CBOE to remove from the Gemini Trust. NASDAQ has also adopted a unique strategy to handle the hard forks.

If at any point in time Bitcoin breaks down into two different competing products, NASDAQ believes both sides of the fork would go to index for one day to come up with the adjusted value after the spinoff is reinvested into the first half. As a result of which, traders will be able to make transactions seamlessly.

NASDAQ has worked with Bitcoin earlier to this. In the year 2015, NASDAQ had offered an exchange-traded note at Stockholm Exchange based on Bitcoin cryptocurrency. At the moment, this virtual currency is trading at markets which are unregulated. It will be interesting to know how the CBOE, CME and NASDAQ are going to promote Bitcoin in 2018.

The financial experts and trade gurus are of the opinion that reputation of this virtual currency is going to strengthen once Bitcoin is being offered by regulated exchanges.

Steven Rudford

Steven Rudford

Hello, my name is Steven Rudford. Welcome to Top10FX.net. Follow my website for the most trustworthy Forex broker reviews and last minute financial trading news.

IC Markets

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