February 15, 2019, | AtoZ Markets - A few months ago the second biggest stock exchange in the world, NASDAQ has confirmed its plans to start dealing with Bitcoin futures in the first half of 2019. This year the company made another move towards adoption of the digital assets. Recently, the stock exchange giant announced its plans of releasing 2 new indexes for Bitcoins and Ethereum.
BTC and ETH indexes will be quoted in the U.S. dollar
The Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX) are the outcome of data dissemination collaboration between Nasdaq and Brave New Coin, a company engaged in data analysis and research. The message on the stock exchange official website states that “BLX and the ELX are designed to provide a real-time spot or reference rate for the price of 1 Bitcoin and 1 Ethereum respectively, quoted in USD, and based on the most liquid ends of their markets. Both indices are calculated using a methodology that has been independently audited against key IOSCO principles." The BLX, as Nasdaq message states, is "one of the most widely-referenced BTC indices among crypto traders and has been calculated back to 2010." "The ELX has been calculated back to 2014", concludes the official note from the company
According to the information on the stock exchange page, indices will begin to provide information to recipients in real time on February 25th. Prices will be updated at intervals of 30 seconds and the Nasdaq Global Index Service (GIDS) will be used.
In addition to the real-time tick messages, as the Nasdaq states, the exchange will support the following directory messages on GIDS:
- Equities Summary which will be disseminated at the end of the U.S. and European trading session to relay the summary of the current trading day's activity for an equity index.
- Index Directory that will be disseminated at the start of the day to relay basic index information.
Stock exchange giant stays interested in the digital assets
Nasdaq has shown great interest in crypto for a long time, and their new initiative is not the first attempt to assimilate into the cryptocurrency space. Last year the stock exchange giant announced its intention of launching BTC futures by mid-2018. Later another statement from Nasdaq arrived saying that the stock exchange giant would adjourn the launch time for improvement purposes in its product. Joseph Christinat, vice president of Nasdaq’s media team, explained that the date of launching Bitcoin futures depends on the approval from the United States Commodity Futures Trading Commission (CFTC).
AtoZ Markets reported earlier that VanEck had submitted a new application for a BTC ETF Proposal, and is still awaiting a final decision from the U.S. Securities and Exchange Commission (SEC) on its joint proposal for a physically backed Bitcoin exchange-traded fund (ETF), in association with the blockchain software and financial services firm SolidX
In recent months, several positive turns have appeared in the decisions of the exchange. Joseph Christinat confirmed that contracts for Bitcoin futures will be launched at some point in the first half of 2019, again noting that Nasdaq is still interested in cryptography.
The previously mentioned US investment company Van Eck, which is interested in its own Bitcoin ETF, continues to work with Nasdaq to produce "transparent, regulated" products with digital assets.
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