Categories LATEST, U.S. Markets News

Nasdaq’s bullish gesture brings cheer to crypto investors

When the concept of digital currency first manifested in the form of Bitcoin nearly a decade ago, what made investors skeptical was its credibility and regulatory issues. A lot changed over the years and Bitcoin and its several siblings are mined and exchanged across the world every day.

Cryptocurrency trading, hitherto confined to unregulated private exchanges, got a shot in the arm this week after Nasdaq CEO Adena Friedman said the stock exchange would consider providing a platform to trade virtual currency.

Speaking at a media interview, Friedman expressed hope that in the coming days, cryptocurrency would become adequately regulated. It needs to be noted that lack of proper regulation has been the primary hassle for any established derivatives exchange to trade digital currency.

Friedman said Nasdaq may consider opening its door to cryptocurrency once the market attains the required level of maturity, and went to the extent of predicting that in future Nasdaq’s course of action would be determined by the demand for cryptocurrency. The growing acceptance of digital currency worldwide underscores the Nasdaq chief’s views.

“I believe that digital currencies will continue to persist it’s just a matter of how long it will take for that space to mature,” said Friedman, stressing on the fresh trading experience the initiative offers. The statement assumes significance against the backdrop of Nasdaq joining hands with leading cryptoexchange Gemini to develop a technology for trading.

Friedman said Nasdaq may consider opening its door to cryptocurrency once the market attains maturity

However, before going ahead with its plan, the stock exchange would have to ensure that Initial Coin Offering (ICO), a procedure followed in the crypto market for fundraising, is brought under strict regulation. The SEC recently stumbled upon instances of fraudulent ICOs and has launched an extensive investigation.

If implemented with foresight and after taking the necessary precautionary measures, the Nasdaq initiative could revolutionize the derivatives market forever and make cryptocurrency a widely accepted investment asset.

While advanced encryption and higher levels of security have fuelled the popularity of Bitcoin, the fundamental disadvantages of the blockchain technology remain a cause of concern for serious investors.

Meanwhile, Friedman’s statement did not bring the expected enthusiasm to the crypto markets, where leading digital currencies maintained their recent lows. However, experts have exuded optimism about the long-term prospects of digital currency, taking a cue from Nasdaq’s green signal.

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