Nasdaq may have just removed one of the most significant barriers before a potential cryptocurrency adoption. Nasdaq said that their independent auditors had verified both BLX and ELX against the critical principles proposed by IOSCO. They are investors’ security, regulating markets to ensure fairness, efficiency, and transparency, and curbing systematic risks.
— Roland (@rolandstautz) February 14, 2019
The launch of Nasdaq crypto indices could lead to regulatory approval for crypto-based derivatives in the market. In the near-term, the move could project cryptocurrencies as new investment alternatives to both retail and institutional investors. According to Ari Paul, the founder and CIO of crypto fund BlockTower Capital, the institutional investment is coming to the crypto space. But, nobody should expect it to arrive earlier.
8/ as an example on regulatory clarity side, we all know BTC is totally legal, but the rules around being a custodian of Bitcoin and how to handle things like hard forks still unclear. AML/KYC requirements still murky for service providers.
— Ari Paul (@AriDavidPaul) February 1, 2019
“I’ve been too optimistic about the pace of institutional adoption in the past,” said Paul. “It’s coming, but I can’t estimate which quarter (whether that’s this year or 2022) that we’ll see a big spike. As a humble guess, something like Q3 2019.”
Some ETF candidates processed the SEC’s issues. They took initiatives to bring a lot of clear evaluation systems for potential investors. VanEck, as an example, launched a bitcoin indicator through its New York-based subsidiary, MV Index Solutions, in November 2018.
Fast forwarding to the current, it seems NASDAQ is additionally functioning on an equivalent issue. The securities market operator has been terribly active latterly within the cryptocurrency and blockchain house. In Jan 2019, it crystal rectifier a $20-million Series B of blockchain startup Symbiont.
In November 2018, a Bloomberg report claimed that NASDAQ was getting to launch bitcoin derivative instrument in early 2019. Per the press association, the exchange was operating with the artefact and Futures commercialism Commission (CFTC) to unravel some restrictive problems. At that point, NASDAQ had partnered with VanEck to use their bitcoin index resolution, as mentioned earlier, for his or her futures contracts.
The investments prove however venture capitalists square measure slowly usurping a market that retail investors dominated historically. Blockchain startups found initial coin offerings (ICO) a much better funding methodology that, within the past 2 years, overtook Angel and Seed risk capital business. it absolutely was primarily because of insubordination whereby early-stage corporations raised billions of greenbacks from non-accredited investors. however because the concepts didn’t turn out to be operating models, folks lost cash and turned to regulators for a lot of clarity over capitalist protection.
It is not clear whether or not or not BLX would play any crucial role in NASDAQ bitcoin futures giving. However it inevitably opens the exchange’s horizons to attain a lot of stable and clear crypto evaluation indexes.
In a broader perspective, the move may lead to determination regulators’ issues concerning new-age bitcoin commercialism derivatives. as an example, the Securities and Exchange Commission (SEC) had consecutively rejected the applications of 9 bitcoin exchange-traded funds fearing market manipulation. The regulator had explicit that exchanges that acted as a bitcoin’s reference worth purpose remained loosely regulated.