NASDAQ too has joined the race of crypto race while the world is awaiting ICE’s new venture Bakkt’s roll out to be the first federally regulated exchange. SEC has rejected so many Bitcoin ETF in almost 2 years and each and every rejection had one point in common in all of them that there is no federally operated exchange that list bitcoins and other cryptos. While slowly all other points of rejection have found an answer, this “reason of rejection” to seems to be answerable soon by NASDAQ.
First mover race to capture institutional movement into the crypto ecosystem
If sources are to be believed The NASDAQ is attempting to be the first mover in crypto exchange governance, order execution, and at the forefront of institutional movement into the crypto ecosystem. While there have been announcements of other headlines connected to global exchanges getting into crypto waters via partnerships and futures trading; the NASDAQ may just go all in. The famously aggressive and tech-savvy NASDAQ seems to be creating a pathway for cryptos to be listed and traded on the exchange proper.
While there has been no announcement as such but an insider source from NASDAQ, close to this development informed ICO Journal that as per the plans and timelines the world may soon see the likes of Bitcoin and Ethereum being listed and tradeable on the NASDAQ.
Quoting from the source note of ICO Journal
“The conversation around listing coins has centered on how they will be classified from a regulatory standpoint. As you can imagine, our leadership is closely connected to the rumbling at the SEC and CFTC around cryptos and what is expected over the next 3-6 months. Even with the longest of time frames assumed, some guidance will be provided and I expect we will act quickly. The framework (two different sets of the framework based on two different regulatory outcomes) has already been laid to create a separate silo for coin listings and a robust trading apparatus. Doing the math here, look for regulatory bodies to provide guidance in Q1 of 2019, and an announcement and a ‘coin exchange’ to either be announced or launched in Q2 of 2019.”
NASDAQ reportedly hosted a closed-door meeting last month in Chicago that included representatives from about half a dozen companies, including Gemini and other cryptocurrency exchanges. According to reports by Bloomberg, the focus of the gathering was to encourage the industry to work toward improving the image of cryptocurrency by validating its potential role in global markets.
In November 2017, A Wall Street Journal report revealed that NASDAQ and Cantor Fitzgerald & Co. will list bitcoin futures within the first half of 2018. As that plan didn’t work out this time it looks like Nasdaq would come out all guns blazing.
The race just got tough for traditional exchanges
While NASDAQ’s official announcement still pending, earlier this month, Intercontinental Exchange—the trading colossus that owns the New York Stock Exchange and other global marketplaces— had announced that it is forming a new company called Bakkt. The new venture, which is expected to launch in November, will offer a federally regulated market for Bitcoin. With the creation of Bakkt, ICE aims to transform Bitcoin into a trusted global currency with broad usage.
This news was followed by Germany’s second largest stock exchange, the Stuttgart Börse, also revealing plans to develop a new platform for Initial Coin Offerings (ICO) as well as a multilateral crypto trading venue.
In July this year Switzerland’s Stock Exchange, SIX also had announced its plans for new market infrastructure which was designed for cryptocurrencies such as bitcoin and will be based mainly on Blockchain distributed ledger technology and will offer integrated post-transaction services such as deal settlement and asset custody
Well as these large technology savvy exchanges get into the fray for crypto listings, their crypto sphere seems to be evolving and maturing. This would definitely reduce the price manipulation and security concerns making it safer for institutional money to be safer.
Definitely, a solution SEC might be looking for. That seems to be set for a Bitcoin ETF application be accepted in Q1 2019? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.