Nasdaq and VanEck are allegedly partnering to launch a brand new ‘Crypto 2.0 futures contracts. VanEck is an investment management company. Under the partnership, the companies will work closely to bring a range of cryptocurrency financial products to market.
The alleged partnership was announced during CoinDesk’s Consensus: Invest conference by the VanEck’s director of digital asset strategy Gabor Gurbacs. The director said that the move is in line with the company’s efforts to bring a regulated crypto 2.0 futures-type contract to the market. The product, however, will be released early in 2019 and it will be first of its kinds of products in the market.
While announcing the product, Gurbacs said that the company has collaborated with the commodity futures trading commission to bring in new standards for surveillance and custody. During an interview with CoinDesk on the same line, Gurbacs said that much talked about futures products could be considered as an upgrade to regulatory standards of the current Bitcoin futures products.
Using the stock market surveillance system of Nasdaq, dubbed SMARTS, along with the trusted pricing benchmarked provided by MVIS, the company aims to trigger confidence with regulators as well as institutions who are trying their best to get into the crypto markets, stated Gurbacs.
SMARTS is an amazing software hosting hundreds of detection algorithms created with the purpose to automatically pick-up on strange or doubtful market activity like spoofing and wash trading. SMARTS is often called the big policeman engine and is a great tool for ensuring the security of Bitcoin futures trading.
The Commodity Futures Trading Commission has reportedly approved two Bitcoin futures products as of now. One of the futures products is operated by the Chicago Board Options Exchange together with Gemini Exchange, while the other is operated by the Chicago Mercantile Exchange together with Crypto Facilities.
These futures were approved because of the cash-settled nature which means upon expiration no “physical” Bitcoins are not required to be moved for settling accounts. This is contrary to the Bitcoin futures that are scheduled to be launched in January 2019. The Bitcoin futures will be operated by the firm Bakkt backed by the Intercontinental Exchange. It will come with a requirement of physically-settlement which means that investors holding the contracts will receive payment in Bitcoin upon the expiration.
However, it is not clear as for whether or not the much-awaited Bitcoin futures product between MVIS, the price indexing arm of VanEck, and Nasdaq will be similarly cash-backed. Gurbacs and Nasdaq representatives denied commenting anything on this.
Nevertheless, 2019 seems to be promising as hinted by Gurbacs while emphasizing on the much-expected launch date that may be somewhere in the first quarter of 2019. There is more good news to expect at the onset of 2019. The physical-backed Bitcoin exchange-traded fund proposed by VanEck in collaboration with SolidX, a blockchain technology firm is likely to reach a final decision by the Securities and Exchange Commission by February end 2019.