A new partnership formed between Nasdaq, one of the world’s leading financial institutions, and investment management firm, VanEck, will see a number of cryptocurrency investment products being made available, including Bitcoin (BTC) futures.
Future Of The Futures?
The director of digital asset strategy at VanEck, Gabor Gurbacs, stated that his firm and New York-based Nasdaq are looking to introduce a “regulated crypto 2.0 futures-type contract.” This, according to Gurbacs, will be the first of many Bitcoin and crypto-centric products that will be made available in due time.
The announcement came yesterday (at the time of writing), November 27th, 2018, at CoinDesk’s Consensus: Invest event. On-stage, Gubacs, a long-time crypto advocate and innovator in this nascent industry announced:
— CoinDesk (@coindesk) November 27, 2018
Winning Over Regulators?
At the Manhattan event, attended by some of this industry’s biggest names, Gurbacs stated:
“What I’d like to point out is we ran a few extra miles with the Commodity Futures Trading Commission to bring about new standards for custody and surveillance.”
He later added that the goal is to:
“inspire confidence with regulators and institutions trying to get involve [in the cryptocurrency market].”
SMARTS (Nasdaq’s stock market surveillance system) and VanEck’s MVIS providing trusted pricing data will help back confidence in the idea, that’s for sure. More importantly, these systems will likely help calm regulatory body’s qualms.
CFTC’s Current Stance
Two Bitcoin futures products have been approved already by the U.S. Commodity Futures Trading Commission (CFTC). These include one available on the Chicago Board Options Exchange (CBOE), in partnership with the Winklevoss twins’ Gemini Exchange. The other is accessible on the Chicago Mercantile Exchange (CME) in partnership with Crypto Facilities.
Looking Forward To 2019
Gabor Gurbacs was quoted as saying that he sees “an exciting Q1 coming up,” before also stating:
“there’s lots to look forward to in 2019”… we believe that 2018 was the year of regulation and 2019 will be the year of implementation.”
Other things to look forward to in 2019 include Bakkt’s Bitcoin Daily-settled, physically-backed futures contracts, which are expected to begin trading on the January 24th, 2019. The previous date set was the December 12th, 2018, with the delay being chalked up to Bakkt’s concerns that its partners and clients weren’t poised for the crypto product launch.
The Next Chapter
2019 has the potential to be a huge year for crypto assets at large. With regulatory guidelines finally taking shape, we could see a massive increase in market confidence and interest from both retail and institutional investors alike, a long time coming for this now-ten-year-old industry.
Trusted, well executed, and easily accessible crypto-centric financial instruments are something I’d personally like to see become widely available.
By the looks of it, we’re only a few months away from this becoming a reality, taking this revolutionary asset class to the metaphorical next level.
Where do you see the crypto markets heading in 2019? Are we in for another downhill slope, or a huge boost? We would love to know, so leave a comment below! :)