Lawyers from Kleinberg Kaplan: NASDAQ’s BTC futures sourcing will be better than in CBOE and CME

Bitcoin futures introduction has been assessed by two hedge fund lawyers at Kleinberg Kaplan, Stephen Bielecki and Eric Wagner. Apart from what they describe below, they also call higher margin requirements one of the flaws of Bitcoin futures.

Bielecki and Wagner told Bitnewstoday about a potential market price stabilization factor from the new futures exchange trading – more price sourcing. “CBOE and CME are planning to use relatively narrow price sourcing, but Nasdaq has said it expects its pricing to be based on dozens of global sources,” they say. “That broader-based sourcing may have a steadying effect on pricing by accounting for myriad Bitcoin markets that, currently, sometimes have significant price dislocations.”

If the market sees the huge price volatility, “CBOE will at least have the ability to halt trading if there are significant swings in short periods,” Bielecki explains.

And the fact that futures contracts allow investors to gain market exposure to Bitcoin without having to hold the actual underlying digital assets, which can require significant technological and security infrastructure, may well help greatly expand interest in digital assets, Bielecki notes. “The futures exchanges may encourage more institutional investors to join the market.”