After a year in which bitcoin prices have left many analysts who suffered from excessive optimism, and having been a year of judicial precedents in the US regarding cryptography, now Nasdaq admits that they will market Futures of Bitcoin in its stock market. This is undoubtedly a step of great importance in the recognition of commercial cryptographic activity.
This information could be heard directly from a Nasdaq spokesperson, who revealed that Nasdaq is ready to start operations only with the approval of the CTFC, and the implementation of bitcoin futures would take shape during the first half of 2019.
Although there were rumors for months about this possibility of Nasdaq listing bitcoin futures markets, it is understandable that they have maintained prudence and reservations in confirming information of such nature until previously covered certain legal points that were clarified during 2018.
Joseph Christinat, the vice president of the Nasdaq media team, however, did not point out the confirmation of the information from this perspective, but instead addressed the audience and reminded them that “there is always an opportunity to communicate directly with the (Nasdaq) team to clarify doubts and avoid unnecessary speculation “.
Nasdaq has been investing financial resources to make it possible for blockchain technology to have a place in its market. And it seems that now is the time when everything is ready to offer a solid and reliable financial product. And it is certainly to be expected that, as a financial product, bitcoin futures contracts will be a success that will surely have repercussions on the price of the main cryptocurrency.
Bitcoin [BTC] futures
Recall what are futures contracts, and how they work in the case of bitcoin. Futures contracts are an agreement to buy or sell a financial asset at a specific future date for a specific price. Once the futures contract has been agreed, the contracting parties have to buy and sell at the agreed price, regardless of the actual market price on the date of execution of the contract. This could even serve as an investment protection mechanism, depending on how the prices are performed at the moment of execution date.
In future contracts there are two positions you can take: long or short. If a long position is taken, it is accepted to buy an asset in the future at a specific price when the contract expires. When a short position is taken, it is accepted to sell an asset at a fixed price when the contract expires.
With Bitcoin futures, the contract will be based on the price of Bitcoin and speculators can make a “bet” on what they believe the Bitcoin price will be in the future. On that bet the contracts will be formulated specifically.
Nasdaq (National Association of Securities Dealers Automated Quotation) is the second largest automated and electronic stock exchange in the United States.