Nasdaq has partnered with New Zealand based Blockchain data firm Brave New Coin to add Bitcoin (BTC) and Ethereum (ETH) indexes to its family of 40,000 indexes.
The leading stock exchange company, Nasdaq has announced plans to include both Bitcoin (BTC) and Ethereum (ETH) to its renowned global data service sometime this month. The support for Bitcoin and Ethereum indices comes after Nasdaq has entered into a partnership with a New Zealand-based blockchain data and research company referred to as Brave New Coin.
Brave New Coin will provide data on the two cryptocurrencies from February. The two services Bitcoin Liquid Index (BLX) and the Ethereum Liquid Index (ELX) are designed to provide “real-time” data the exchange’s Global Index Data ServiceSM (GIDS).
In other words, the BLX and ELX will provide users with “real-time” spot or reference rate” in relation to the price of 1 BTC and 1 ETH. The price will be quoted in USD and will be refreshed every thirty seconds.
“The BLX is one of the most widely-referenced BTC indices among crypto traders and has been calculated back to 2010. Likewise, the ELX has been calculated back to 2014.”
Nasdaq is truly dipping its toes deeper into the crypto ecosystem getting ready to launch its own Bitcoin futures platform in Q1 of 2019.
Do not forget that Nasdaq also acquired Swedish Crypto-friendly exchange Cinnober last year and has invested in Crypto exchange ErisX and Enterprise Blockchain firm Symbiont.
Nasdaq’s CEO Adena Friedman complimented Cryptocurrencies saying:
“The invention itself is a tremendous demonstration of genius and creativity, and it deserves an opportunity to find a sustainable future in our economy.”
Larger institutions like Nasdaq, ICE and Goldman Sachs are slowly but surely building the infrastructure for the maturation of the Crypto ecosystem.
Apart from operating for equity, options and futures market, Nasdaq is also known for providing trading and market surveillance technology to seven cryptocurrency exchanges at least. Nasdaq has previously partnered with Symbiont, a crypto firm in order to offer white label solution to supports other exchanges to launch markets built on blockchain technology, reported the publication. Nasdaq also has been working towards its own bitcoin futures, whose launch date for the new market is still uncertain.
A Step Toward Mainstream Adoption
This move is another example of how NASDAQ is eagerly embracing cryptocurrencies as a tool to expand their trading services.
NASDAQ is the premier exchange for institutional investors, and so the more they shine a spotlight on Bitcoin, Ethereum and other major cryptocurrencies down the road, the more we can expect that institutional investors will begin flushing their money into the crypto markets via these traditional stock trading channels.
Being the Anchor partner Nasdaq is expected to benefit from developing applications on Assembly, the enterprise blockchain solution on the smart contract platform. A recent report stated that Assembly provides its participants with an opportunity to enter the digital market by providing a superior infrastructure on which they can build the future of financial markets.
And as we already wrote, according to Nasdaq President and Chief Executive Officer Adena Friedman, one of the most positive trends with regards to cryptocurrency recently is the fact that more high-profile individuals in the finance world seem to have no problem acknowledging that there is massive potential in the sector.
Writing ahead of her appearance at the World Economic Forum at Davos last week, Friedman stated that Nasdaq believes crypto will have a role in the future, characterizing “the invention itself [as] a tremendous demonstration of genius and creativity.”
Thus far, she added, crypto has evolved through what she terms a classic invention lifecycle from its early path forged by pioneers in cryptography and economics, to a period of hype, the proliferation of new market entrants, and now, most recently, “a dose of reality.”
For many, that dose of reality is a real hard hitter. Over $400 billion has been wiped off the market capitalization of cryptocurrencies. Bitcoin’s price has fallen from highs of $19,000 to lows of $3,200. Early investors may still be in profit, for those who joined the market on its way up, they are sure feeling the downside.