NASDAQ to launch bitcoin futures

Nasdaq Inc plans to launch a futures contract based on bitcoin in 2018
30 November 2017   1605

The world's second largest stock exchange, National Association of Securities Dealers Automated Quotations (Nasdaq) plans U.S. derivatives contracts related to the digital currency as early as the second quarter of 2018. Cantor Fitzgerald LP intends to offer a bitcoin derivatives platform on its exchange around the same time.

However, NASDAQ is hardly the first player from the traditional finance world to launch bitcoin based futures. CME Group, the world’s largest derivatives exchange, and CBOE Holdings, have both announced their plans to launch futures products based on bitcoin this year, pending regulatory approval.

One of the ways the Nasdaq futures product will differ from CME’s and CBOE’s is that it will be based on an index that takes in prices from more than 50 bitcoin exchanges. CME has said it’s bitcoin future will be based on the CF Bitcoin Reference Rate (BRR), when CBOE will price its bitcoin future off the Gemini Trust.

Bakkt to Unveil Bitcoin Futures Test Date

Along with date announcement, COO Bakkt believes the platform will attract institutional investors and set new standards for the cryptocurrency market
14 June 2019   236

The Bakkt cryptocurrency platform has named the exact start date for testing Bitcoin futures. The first users will be allowed to test the tool on July 22.

According to Bakkt's Operations Director, Adam White, the platform will attract institutional investors and set new standards for the cryptocurrency market.

White pointed out that the wider distribution of cryptocurrencies, in particular, is hampered by unreliable pricing mechanisms and the likelihood of instantly falling rates.

Along with these problem-solving solutions that are new to digital asset markets, Bakkt also brings all the other features that institutions would expect in a versatile and broadly accessible market, including: block trades; a fee holiday through the end of the year to encourage trading; market maker incentive programs to encourage liquid markets; and integrations with ISVs and regulated brokerage platforms.

Adam White

COO, Bakkt

At Bakkt, two futures contracts will be presented - with daily and monthly settlements. Risk management and the securing mechanism for these contracts will meet the standards of the traditional derivatives market.