Derivatives help increase liquidity and improve markets for an asset category by allowing investors to bet on ups and downs of an asset, evening allowing individuals to adopt market-neutral strategies. They are also a key component in the creation of many futures-backed ETFs utilized by a range of investors.

“There are four exchange giants in the U.S.; Nasdaq joins CME Group Inc. and Cboe Global Markets Inc. in seeking to jump into cryptocurrency derivatives. That leaves New York Stock Exchange owner Intercontinental Exchange Inc. as the only one without public plans for bitcoin derivatives,” according to Bloomberg.

Some market observers believe the launch of bitcoin futures will speed the introduction of exchange traded funds based on the digital currency. In recent weeks, several ETF issuers have also filed plans for blockchain ETFs, which would hold stocks with exposure to the digital currency trade.

Bitcoin traded above $11,000 for the first time earlier Wednesday.

For more information on the cryptocurrency market, visit our Bitcoin category.

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