Bitcoin Futures To Be Introduced by NASDAQ

Nasdaq Inc. plans to introduce bitcoin futures sometime next year, thus becoming the third major U.S. exchange to attempt to dive into the red-hot market for cryptocurrencies.

The New York-based exchange aims to introduce the products as early as the second quarter. The contracts will trade on Nasdaq’s NFX market.

There are four exchange giants in the U.S.; Nasdaq joins CME Group Inc. and Cboe Global Markets Inc. in seeking to jump into cryptocurrency derivatives. That leaves New York Stock Exchange owner Intercontinental Exchange Inc. as the only one without public plans for bitcoin derivatives.

Currently, Bitcoins trade on unregulated markets in the eyes of traditional banking and investment regulatory institutions. On the other hand, Nasdaq, CME and Cboe are heavily regulated, bringing an air of legitimacy that should help professional investors feel more comfortable about participating with cryptocurrencies.

Companies such as e-Chat represent new opportunities to secure and trade Bitcoin and other cryptocurrencies. 

Anyone on the sidelines has missed out on a massive rally: Bitcoin’s price surpassed $11,000 for the first time earlier Wednesday and has increased in value by more than 11 times in 2017.

What Is Bitcoin?

Bitcoin is a digital cryptocurrency with no intermediaries or banks necessary to conduct transactions. It was designed as open-source software in 2009 by an individual or group known only as Satoshi Nakamoto with the intention to minimize transaction costs and deregulate currency. The cost of a bitcoin has skyrocketed this year. When the calendar rolled over to 2017, a price of one bitcoin was just a shade under $1,000.