This week top cryptocurrency journals are reporting new revelations on the future of Bitcoin futures.
Futures markets are based on predicting the value of an equity at a given point in time in the future – now, exchanges are due to add crypto to the range of commodities and equities futures available on top exchanges such as the NASDAQ.
Analysts are looking at remarks by NASDAQ VP of Media Joseph Christinat who talks colorfully about adding Bitcoin futures to the exchange, saying the move has been in the works for some time and is about to happen in 2019.
“We put a hell of a lot of money and energy into delivering the ability to do this,” Christinat said according to Cointelegraph. “We’re doing this no matter what.”
As for the “crypto power couple” at the NASDAQ, Jeff Sprecher and Kelly Loeffler, although we don’t hear much specifically on this new round of reporting, there’s news that Loeffler is due to step down at Intercontinental Exchange, presumably, to put more time into building the Bakkt exchange in anticipation of more BTC mainstreaming.
Without knowing whether Bitcoin futures will be cash-backed or physically settled, we can expect a push for these future markets to open in the coming year, and that’s significant for a number of reasons.
Journalists have spent quite a bit of digital ink talking about SEC approval of Bitcoin ETFs. That’s supposed to be a huge indicator one way or another when the SEC finally decides if they will allow exchange traded funds based on Bitcoin values.
People haven’t been talking as much about other markets like the Bitcoin futures market – but like the Bitcoin ETF market, Bitcoin futures opens the range of possibilities for cryptocurrency investors.
It’s true that the ETF opportunity is unique – it’s a way for small money beginners to wade into the Bitcoin market, and it opens up all sorts of liquidity and market day moves for the whole range of investors.
But futures markets open up opportunities, too – enterprising scryers who feel they can predict Bitcoin values over time will jump onto these markets and that will create more Bitcoin financial activity.
So if we’re talking a lot about the Bitcoin ETFs, we could also talk about Bitcoin futures and Bitcoin options and everything else.
The point is that there is a greater context to this than just whether or not the SEC will allow Bitcoin ETFs based on the volatility they see in today’s market.
As a long-term Bitcoin buy-and-holder, you’re also weighing in on whether you expect that volatility to last forever.
We’re not going to rule on whether you’re going to see wild Bitcoin spikes in 2019 or volatile candlesticks lasting into 2020 and beyond. That’s for every investors to determine using due diligence. But if you’re enthusiastic about Bitcoin ETFs, keep an eye on that emerging futures market as well.