Recent reports indicate that the New York Stock Exchange (NYSE) is planning to provide Bitcoin (BTC) swap contracts, on CNBC Tuesday, May 8. Analysts Dominic Chu and Robert Kelly weighed in on this matter. Both Chu and Kelly discussed that the fact that these contracts would be settled with the delivery of BTC itself is a crucial factor in Bitcoin’s mainstream adoption.
Both analysts had the same opinion in considering that the plans of NYSE’s parent company Intercontinental Exchange (ICE) – which the news comes from “multiple reports citing sources familiar,” if true, could have a great impact in the future of crypto.
While the futures contracts currently being offered on CME and CBOE are processed in fiat currency, Kelly emphasized that ICE’s suggestion that crypto swap contracts will be processed in BTC is a major milestone that could entice major Wall Street crypto adoption. Kelly further elaborated:
- “[The] physical delivery of Bitcoin…means that ICE has a custody solution. That has been the big hurdle. How do you hold onto these assets? These are generally bearer instruments…and so you have to have a third-party custody person. That’s the big deal, they have come up with a custody solution for institutional holders.”
Kelly mentioned that the markets have been slow to respond, suggesting that a lot of people are underestimating the importance of the news.
ICE’s plans are announced nearly a week after investment banking giant Goldman Sachs announced it will be opening a crypto trading desk “within weeks,” while also recently hiring a cryptocurrency trader as vice president of their digital asset markets.
Bitcoin is currently trading at $9,300 with a market cap of $158,772,137,510.