VanEck is desperate to sink its teeth into the crypto world and finally list a crypto related product. The company has been in the running to create and launch America’s first Bitcoin Exchange Traded Fund (ETF), but the US Securities and Exchange commission (SEC) has shot it down on multiple occasions. It looked like the VanEck BTC ETF was about to get approved after the SEC asked for more input from crypto experts, but the SEC has come out and said that it will postpone the decision until further notice.
Despite this, VanEck has pushed ahead and forged a partnership with NASDAQ – the second largest stock exchange in the world – in order to bring Bitcoin futures contracts to the American markets. Last December, the CBOE launched Bitcoin futures trading and it got off to a flying start – VanEck is hoping to experience the same welcome to the crypto world.
Tweeting the Partnership to the World
The rumor mill has been churning out headlines about this partnership and a new range of futures contracts for some time now. Now it appears to be closer to becoming reality, Gabor Gurbacs – VanEck Director of Digital Asset Strategy – posted a Tweet confirming the news to the world. VanEck will be responsible for creating the spot price for the futures contracts, while NASDAQ will handle the trading aspect.
@Nasdaq and VanEck’s @MVISIndices announces #index #partnership and intention to bring to market transparent, regulated and surveilled #DigitalAssets products, such as #Bitcoin futures contracts. More info to come. Share & follow us. #crypto #futures #SMARTS #ConsensusInvest pic.twitter.com/Q2oCZx4pp1
— Gabor Gurbacs (@gaborgurbacs) November 27, 2018
Settling Yet to Be Confirmed
The two Bitcoin futures that are already on the market are cash-backed, meaning that when the contract expires that the holder is paid in cash. This is most likely going to be the way NASDAQ will handle these new Bitcoin futures, but with the launch of Bakkt in early 2019 it could force NASDAQ’s hand into using physically backed futures. This would mean that when a contract expires the holder is paid in Bitcoin – a pretty cool possibility that would drive a lot of interest and money into Bitcoin futures contracts.
Bakkt Delay is Good News for NASDAQ and VanEck
Back in November, Bakkt announced that it will be delayed until late January 2019. This is positive news for the NASDAQ and VanEck partnership, as it too will be launching futures. The Bakkt futures will be a direct competitor to the new partnership’s, in the fact that these will be physically backed futures. Now that NASDAQ and VanEck look set to launch their futures first, Bakkt could see a lower volume, as futures investors will already have Bitcoin futures exposure with NASDAQ and VanEck.
These new Bitcoin futures contracts are just the news the crypto markets have been waiting for. Given the meteoric price rise crypto markets saw the last time Bitcoin futures hit the markets, we could be in for a huge price rise – or at least that’s what we hope.