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Bitcoin Futures Coming to Nasdaq

 1 min read / 

The Story

The second-largest stock exchange plans to launch bitcoin futures contracts in 2018, joining the Chicago Mercantile Exchange and CBOE Holdings in offering the bitcoin-based derivatives. Nasdaq has enlisted the support of VanEck, a New York-based investment management firm, to develop the contract.

Why It’s Important

Bitcoin has increased by 5.4% this year and 61.7% this month. The derivatives are expected to drive even more speculation as Wall Street gets in on the action. Many suspect the move will increase demand for the cryptocurrency, but sceptics warm the bitcoin is in a bubble; even if its price increases in the short run, this bubble will eventually burst.

What to Look Out For

JPMorgan is currently debating whether to offer such bitcoin derivatives to its clients. CEO Jamie Dimon called the cryptocurrency a “fraud” back in September. Dimon has since stopped publically discussing bitcoin.

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