Nasdaq are Exploring Building Analytical tools for Cryptocurrency Trading.
According to a source close to the company, Nasdaq is actively working on and preparing to add a new set of tools to its analytics hub for cryptocurrency trading. The addition of cryptocurrency to the staunch lineup of traditional assets featured in the analytics hub, would potentially mark the first real major move for the Nasdaq into this new age of financial assets.
Earlier in April of this year, Nasdaq CEO Adena Friedman made a public statement, that the company was exploring the possibility of launching a Bitcoin Futures product to its clients, and even entertained the idea that they may launch a dedicated cryptocurrency exchange, however either of these have yet to be seen.
The Analytics hub which was launched last year utilises machine learning and natural language processing (NLP) to analyse Nasdaq’s first and third party data sets, including: Technical analysis, social sentiments, macro events and more to provide a much deeper and wider view of the market as a whole to investors and traders.
Coindesk’s Ian Allison reached out to Bill Dague, Nasdaq’s head of alternative data who elaborated on the rumour by saying:
“Given the abundance of interest, we are exploring cryptocurrency related datasets.”
Dague however went on to add:
“Whether or not we launch a crypto-related product remains to be seen.”
The source of the reported rumour however is said to be adamant about these tools, and says they are currently being tested and will provide market sentiments on around 500 Crypto assets, with a main focus of flow of money across the network into wallets, data from exchanges and social sentiment.
“There’s the social media sentiment part, so applying machine learning and NLP, which will start with Twitter and might include StockTwits and then eventually perhaps Reddit.”
Nadaq are not the first large instituion into this space and it appears this move is becoming ever more unanimous across wall st as traditional financial institutions look to not be left behind and secure their share of this market.