Nasdaq Exploring "Total Return" Bitcoin Futures Contract
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.
thank you
For the bitcoin and the big bauxite, the signs of success in the next nine years will be more than we have seen over the past nine years. And that the protocols have their own timing, which is much longer than the time owned by companies, but failure can be the result of different scenarios. The main way that bitcoin can fail is if we start putting money we can not afford to lose in bitcoin. In other words, do not put your children's college fund or your retirement savings in bitcoin
It is a valuable recommendation in many areas of life
Yeah right bro we needn't to be afraid to bitcoin.
Despite what happens bitcoin is the giant information you are talking about, Dan Schulman, CEO of PayPal and a leader in digital currencies and Winsis Sezars about bitcoin, pluxin and financial technology is generally speaking in an interview on Facebook. The Sizares business has launched several start-ups throughout South America and the United States, including the emerging Xapo portfolio. In addition, he is a member of the Board of "PayPal".
bitcoin and bilaxin change the world
Schulman noted the price of bitcoin, which was traded at the time of the interview at $ 14,800, where Schulman predicted that the price may change during the interview during the interview. Bitcoin and pluchene have captured people's attention as "an interesting experience," Sezares said. "If it succeeds, the world will change more than the change brought about by the advent of the Internet," he said,
Thanks for the valuable participation. @zer0hedge
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
Yes, leader, thank you for your reminder❤❤
Quite a lot of information here I didn't know.tnx bro for sharing.
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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.
"What we might look at is more of a total return futures, so it's a little bit of a different construct," adding that it meant it was "more of an investment than a tracking stock."
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.
In terms of traditional exchange volume this ranks as the 14th largest exchange worldwide, but when you add margin volume to the calculation the exchange is actually the largest in the world