Nasdaq and VanEck looking to bring an "upgraded" Bitcoin futures product to market

28 Nov, 2018
by David Borman
Nasdaq and VanEck looking to bring an upgraded Bitcoin futures product to market

It is being reported by Coindesk that Nasdaq and VanEck's will be partnering to bring a new type of Bitcoin futures contract to reality. This "upgraded" contract comes backed by Nasdaq's surveillance system for spotting price manipulation in the market.

The new contracts were announced by VanEck’s director of digital asset strategy, Gabor Gurbacs and he described the product as "a regulated crypto 2.0 futures-type contract.” He goes on to elaborate:

“What I’d like to point out is we ran a few extra miles working with the [Commodity Futures Trading Commission] to bring about new standards for custody and surveillance...”

What makes these contracts unique is that they're monitored by Nasdaq's Stock Market Suveillance System, or SMARTS. The system works by using hundreds of different algorithms to detect wash trading and other market manipulating activity. This, in conjunction with pricing benchmarks, should give investors greater faith in a more stable market than traditional crypto.

The contracts will also be cash settled, meaning no actual Bitcoin will ever be moved, just fiat contracts based upon the price movement of Bitcoin. This is in contrast with the upcoming Bakkt Bitcoin futures planned next year, which will be physically settled, meaning actual Bitcoin will be delivered upon settlement.

This product should be launching in Q1 2019, which is about the same time as the Bakkkt product. As Gurbacs is quoted in the article:

“We believe that 2018 was the year of regulation and 2019 will be the year of implementation.”

Read more: Nasdaq to launch Bitcoin futures despite falling prices, sources say

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Read more about: Nasdaq Bitcoin (BTC)


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