After abandoning the decision to list actual cryptocurrencies in 2019, NASDAQ may carry through with the plan in 2019 according to inside sources. With a market capitalization of $10.376 Trillion, NASDAQ is the second largest stock exchange in the world behind the New York Stock exchange whose market capitalization is $23.139 Trillion as at 2018.
There Is A Form Exchange For Cryptocurrencies In Two Leading Exchanges
The Chicago Board Options Exchange (Cboe), the largest Options market in the US has been offering a Bitcoin future trading option to investors. Additionally, the Chicago and New York Based CME is offering future options exchange for the Bitcoin.
Under these arrangements, the buyer is at liberty to buy or sell the Bitcoin at a future date to an investor under no set obligations. Under this scenario, the BTC future trade price is either determined by the spot price at the point of agreement or a discounted price under a negotiated deal. It is important to note that the transaction goes through If the seller exercises the options rights.
Differing from the options exchange solution that is available from the CME and the Cboe, the NASDAQ services will be a one time and instantaneous sale or buying of Cryptocurrencies in the conventional stock exchange environment that NASDAQ is a leader.
The NASDAQ Move Will Signify The Beginning Of Lucrative Crypto Investments
The decision by NASDAQ to incorporate the Crypto exchange service will ensure that the exchange is at the forefront of largely untapped institutional investments into the world of digital assets, a factor that is attributed to the low market capitalization of the Cryptocurrencies that is at $202 billion at as the beginning of Thursday, 6th September.
There Will Be More ETF Applications To The SEC
Some analysts allude that the reason why the US Securities Exchange Commission (SEC) has been rejecting ETF applications is due to the exclusion of the crypt 0exchanges from established and legally recognized and federal stock exchanges. The SEC has been of the opinion that the lack of the service is a factor that blurs the determination of the digital assets prices at the end of a trading session, therefore, impacting investment decisions negatively. This is in contrast to the ETF requirements of price determination at the close of a day’s trading session.
Hence, the NASDAQ decision will see to it that the SEC gives many Crypto ETFs such as the Bitcoin ETF application the green light to ETF applications.
NASDAQ Will Liaise With Regulators
The direction and the input of regulators will be vital for the NASDAQ decision. In this regard, there will be consultative talks with the US SEC and the CFTC. The time frame for the conclusion of the talks is three to six months. Ultimately, the NASDAQ team expects that the guidance will be provided by Q1 of 2019 and the crypto exchange service will be rolled out by Q2 of 2019.
This will mark the conclusion of ongoing discussions between NASDAQ and Crypto exchanges such as Winklevoss twins’ Gemini exchange on the viability and risks of Cryptocurrencies.