Content adapted from this Zerohedge.com article : Source
by Tyler Durden
The battle to establish the de facto standard bitcoin futures contract is intensifying. After the Cboe, and then the CME, launched trading of bitcoin futures on their exchanges late last year, Nasdaq is now considering offering a similar product.
But Nasdaq is investigating how to offer cryptocurrency futures in a way that none of its competitors have so far managed, the CEO of the stock exchange told CNBC Tuesday.
Adena Friedman confirmed earlier reports that the Nasdaq is looking into bitcoin futures, but refused to offer a timeline and emphasized that they're still in their exploratory phase. Though her comments suggest that development is happening.
"We are continuing to investigate the idea of a cryptocurrency futures (contract) with a partner and we continue to look at the risk management around that, making sure we are putting the right protocols in place, making sure there's proper demand, and that the contract is different from what's already out there," Friedman told CNBC.
But speaking during an interview at The Sanctuary in Davos, Switzerland - where cryptocurrencies are bound to be a hot topic of discussion - Friedman said that the Nasdaq will offer a different type of contract: Their model will be what Friedman described as a "total return" model.
"What we might look at is more of a total return futures, so it's a little bit of a different construct," she said, adding that it meant it was "more of an investment than a tracking stock." This suggests the product might track a spot rate rather than any future price.
"We will have to see whether it makes sense at the end of the day, proper client demand, and on a risk-management side 'do we feel confident?,' in which case we would look to go to the CFTC (Commodity Futures Trading Commission)," she said.
While we wouldn't want to mistake correlation with causation, the launch of the futures contracts preceded by several months a series of precipitous selloffs across the crypto landscape. Bitcoin has gotten off to a rough start to the year, and is down roughly 50% from a high just shy of $20,000 reached in late 2017.
However, there's some evidence to suggest that Nasdaq has missed the boat on the bitcoin boom. The CEO of TD Ameritrade told CNBC Tuesday at trading volume in cryptocurrencies has fallen since the start of 2018.
But there's a higher purpose to offering a bitcoin futures contract: It's a battle for prestige. The exchange whose contract becomes established as the de facto bitcoin futures product will win profits and burnish its reputation.
If by offering BTC or any other cryptocurrency to the markets for trading gets them more widely accepted and more people interested then it can only be a good thing for everyone involved. It will establish them as valid and viable. People will want them, companies will want them, that in turn will drive the value up.
The hard work of getting them established will be taken over by the markets, the fight will be a damaging one for some but the winners will be cryptocurrancies
Do not be afraid to bitcoin that it imposes itself strongly
Distinguishing between bitcoin and the primary protocol is considered an advance, but attention in the buccaneer rather than bitcoin is considered "ignorant of how the system works", according to Cesares. Pluxin does not exist without bitcoin, and the plucin network did not come to life until January 2009, when it became possible to trust the integrity of data without hardware or software knowledge or jurisdiction because all this simply does not matter. With the buccaneer, there are no counterparties. If you want to remove bitcoin, the minerals will disappear with the plocene.
As for the future of alternative digital currencies, Schulmann said it was an experience whose consequences were unknown. Sezares also expects that it works on a single block network, with the exception of some use cases that require different proxy networks, such as only one Internet.
A very important topic is grateful to you for your participation @zer0hedge
Yeah we needn't to be afraid.
Yeah right bro we needn't to be afraid to bitcoin.
It is a valuable recommendation in many areas of life
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This all smells really bad. Heavy hitters who have to abide by laws and regulations get to do whatever they want in the cryptocurrency market. Are we going to see an artificial manipulation of the cryptocurrency market to guarantee stock market returns?
This decentralization can not be controlled by them and can not interfere with the waste
It's not worth worrying about
Remember what happened when futures were going to be made available on the stock market? For two weeks, prices shot up way faster than normal. Bitcoin hit $20K. When Futures started trading, Wall Street heavies bet big that the Bitcoin would plummet via futures. Then by magic major Bitcoin, Litecoin, Ethereum holders/founders said that they had enough and were dumping their holdings. Immediately after the news, the cryptocurrency market plummeted... Bitcoin plummeted by thousands of dollars yet the futures bet was off by only a couple of hundred dollars. How is that even possible to be so accurate?
Do you think that those individuals that publically announce that they were dumping their cryptocurrency holdings had no idea what affect that would have on the market and how that would line certain individuals in Wall Street that bet on the market to plummet?
It was/is all too easy to manipulate the market. This can't be done in the normal business sector. Those people would go to jail. In Cryptocurrency, they get a free pass. Anything they do to make a buck and damage the reputation of cryptocurrency is OK to any government because cryptocurrency is a threat to government.
all this is quite difficult. I, like many others, are most likely interested:
and all this - in the next five years.
And it is clear that these questions most likely no one can answer guaranteed.
All this is an "aggressive" investment. Investing all your money is an incredible risk. You have to be ready to take everything, right?
According to Friedman, though, the Nasdaq futures will be 'more of an investment than a tracking stock,' adding: “What we might look at is more of a total return futures, so it's a little bit of a different construct.”
NASDAQ's feature is adorable.
The new impetus for us as investors is to be balance-sheet suppliers. We've detected a rise in the pricing of total-return swaps in which we provide a balance-sheet rental. The trade is simple: We buy an asset and then transfer all of the credit risk of the asset back to the bank that sold us the asset.
U named the investors rightly.
It is anticipated that the start of Bitcoin's trading in futures will help turn virtual currency into a more stable investment vehicle.
It's a difficult thing to predict. That pricing mechanisms are just totally broken. A loss of faith in USD could either end in hyperinflation from people offloading it, or end in a kind of ultra-deflation in write-offs and mark-downs because most of the currency out there is actually debt just masquerading as money. I've had to strike an awkward balance between cautiously protecting what I do have for hyperinflation, while also making some wild speculative gambles--just in case I'm wrong and it swings the other way. It's a chore trying to manage all of this in a market that is essentially built on compounding and self-reinforcing lies.
However I thing the future of bitcoin is ambiguous as an illegitimate child.. @zer0hedge
@zer0hedge...bro I'm using BTC as a payment gateway, pretty much don't care at what price it is trading, main concern are the Fees and Volatility at lesser extend... "Adena Friedman" - that figures. Jews are found everywhere ones they heard rustle of FED Reserve notes..But BTC is hardly dying. Using numbers from coinbase, BTC rose from a low of 734.64 on January 12, 2017 to a high of 19,891.99 on December 17, 2017. That was a 27 fold increase.This steep correction was needed and not surprising. Things are just heating up as Wallstreet prepares to dive deeper into crypto world.Remember the path or cycle. Wallstreet peddles it to Mainstreet and leaves the retail holding the bag. Give them a few more years. They are just getting started. The decline was a typical shakeout of weak hands. They want the BTC to sell later at a higher price before the real collapse years from now.It's a difficult thing to predict. That pricing mechanisms are just totally broken. A loss of faith in USD could either end in hyperinflation from people offloading it, or end in a kind of ultra-deflation in write-offs and mark-downs because most of the currency out there is actually debt just masquerading as money. I've had to strike an awkward balance between cautiously protecting what I do have for hyperinflation, while also making some wild ..thank you for sharing with us...
I didn't know about Friedman figures.tnx bro for sharing.
By allowing futures for Nasdaq, CME and CBOE both investors will be able to increase interest in the bitcoine and indirectly contribute to making bitcoin's floating prices more affordable.
The Nasdaq did not seem to be very interested in the bitcoin world compared to other Wall Street companies. Speaking about ICOs over the past few years, Nasdaq CEO Adena Friedman has described ICOs as emerging technology and has not yet expressed intent to deal with new technologies. It seems that this perspective has changed a long time ago.
Bitcoin and other digital currencies will increase their efforts to legalize the economy in the real economy even more, which is why it is very pleasing news for bitcoin investors.
Yeah u r right that the NASDAQ didn't seem to be very interested in bitcoin.
Bitcoin has lost serious prestige after fall. Raise prestige again and gain confidence. I think Bitcoin's futures trade will get this prestige at the beginning.
Bitcoin is Unstoppable @zer0hedge
It's a difficult thing to predict. That pricing mechanisms are just totally broken. A loss of faith in USD could either end in hyperinflation from people offloading it
Yes prediction is difficult ..but we can expect a huge price if trading is doing asusual in the all countries...
All these nutjobs manipulating the crypto market. All it takes is one rumour for people to start selling. Can you think of a way to reduce FOMO?
Not a rumor..in some countries ..their governments put a very strict ristriction about bitcoin transations..so thats the reason the price was decreases suddenly..
i do not believe that Nasdaq has missed the boat with bitcoin .it is firmly believed that since the price of bitcoin has fallen with almost half its value i firmly believe that it's a good time that Nasdaq come in at this point
i think cryptos are future
This is such positive news for cryptocurrencies. CME, CBOE And Nasdaq are competitors and competition means progress. If they are in a race to offer the hottest product to their clients, that will accelerate adoption of altcoon futures! I am very excited to see how nasdaq will shape their "product" and how will they offer it.
It is time for Btc to grow up.
If BTC (and crypto) need any more to be legitimate, this is it. The NASDAQ is the biggest exchange to embrace this so far. This will enable the institutions to get into it...that is where the big money is...instead of dealing in billions, you are now talking trillions of dollars.....
I love this....set the dogs off at each other. Let the sharks on Wall Street battle it out to be top dog...that will only make the entire sector that much more valuable.
Big traders will enter the bitcoin and the rich and they will be playing a little price for me to scare the weak heart and soul
Yeah its cryptocurrencies time .
My thoughts exactly.
In terms of usual quarrel volume this ranks as the 14th largest row worldwide, but considering you grow margin volume to the buildup together the dispute is actually the largest in the world
The btc futures are going to pump the crypto sector big time and that is good.
Honestly though, I just hate to see these sharks involved.
It is ironic though that they are playing with cryptos since the blockchain will ultimately upend their whole industry. I guess they can't help but play with the fire.
Wall Street is cancer. Crypto is the cure.
Lets all watch the banksters gut each other before they finally fall flat on their faces.
But also
Sezaris warned that due to the nature of the experiment, bitcoin and plucin may also fail as bitcoin and bulecine gave at least a 20% chance of failure. The main investment advice was that people should not invest more in digital currencies than they could afford to lose. But after this warning he pointed to the positive side saying that there is a 50% greater chance of success of bitcoin and plucin. To achieve this result, participants in the industry must be patient, as it will take five to ten years before this success is enhanced. In a successful experiment, Cesares pointed out to a different world and "tangible economic consequences", saying that the single bitcoin would be worth a million dollars. Therefore, most countries in the world would wish if they had bought it for $ 14,000 or even $ 20,000, taking into account the risks and daily low price
bitcoin
Quite a lot of information here I didn't know.tnx bro for sharing.