Economic News

Move over CME as Nasdaq preparing for a Bitcoin futures contract also in 2018

Wall Street is gearing up to financialize Bitcoin big time in 2018.  And in a new report on Nov. 30, it appears that it will not just be the Chicago Mercantile Exchange (CME) that will be introducing Bitcoin futures contracts, but also the Nasdaq as institutional investors salivate with the potential of driving up the price while also having the capacity to short cryptocurrencies.

According to The Wall Street Journal, Nasdaq’s contract on bitcoin, which has soared up to $11,000, would be traded on Nasdaq Futures (NFX), a marketplace, established in 2015 and until now dealing with the energy sector. 

Additionally, Cantor, a global financial services firm, is planning to launch its bitcoin derivatives, which would allow traders to swap bitcoin prices up to three months out with protection of their losses in case the cryptocurrency rockets above $15,000 or below $5,000, according to the newspaper. 

The introduction of bitcoin futures would reportedly be a step toward the maturity of the young cryptocurrency, since it would make the bitcoin trade easier both for major banks and private investors. However, financial institutions are avoiding dealing with bitcoin due to its notorious volatility and associations with illegal activity, the newspaper added. – Sputnik News

Source: thedailyeconomist.com