Dominic Chu and Robert Kelly have all tried to weigh in on the fact that the New York Stock Exchange is going to offer Bitcoin the option to swap contracts. Chu and Kelly both argued the fact that these contracts would be settled with the final goal being BTC adoption itself. This is going to be a huge factor when it comes to whether or not it will be adopted as being a mainstream currency.
Commentators were all unanimous and they also thought that the plans of the parent company for NYSE could cause a lot of consequence for the world of cryptocurrency. The contracts for the future on the other hand are being offered on CBOE and CME. Kelly has also gone on to emphasise the fact that the ICE’s suggestion that cryptocurrencies could go on to swap contracts would be a huge milestone. They have also stated that this could mean great news for Wall Street as well. Kelly went on to say that if Bitcoin could be physically delivered then this would mean that the ICE have a solution in custody. This has been the big hurdle for the whole thing so far, but the question is how does one hold onto these assets? This is usually done by a third party and that is going to be a huge deal when you look at the bigger picture. You would have to come up with a solution that would suit institutional holders as well.
At the moment, a lot of small operators are being given the chance to offer cold storage solutions and these are seen as being custodian. ICE has not yet confirmed whether or not they plan to build their own in-house storage solution or whether they are going to try and outsource it. The ICE has also stated that they are not going to comment on any of these issues, and that no further statements are going to be given so far. Kelly has also gone on to say that if ICE are able to offer a solution that qualifies with the SEC and if they are also able to make it custodian then this would essentially open the floodgates and there would also be a rush in institutional capital as well. This would result in even more price moves in the cryptocurrency market. This could be good, but it also could be bad depending on the way that you look at the situation and the currencies that you choose to invest in.
A custody solution would also help people to invest in endowments and even pensions as well. This leads Kelly to conclude that cryptocurrencies should certainly look toward becoming an emergent asset class and this would be done at the expense of gold as well. Kelly has also noted that the market has been very slow to respond recently and he also believes that a lot of people are not taking this news as seriously as they should be.
The ICE have plans for this and this comes days after Goldman Sachs announced that they are going to be opening up a cryptocurrency trading desk. It is only going to be a matter of weeks before this happens and a trader or vice president is also going to be hired.