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Bitcoin Bulls Hit With a Twist From Nasdaq: Here's What Happened

Wed, 07/19/2023 - 15:10
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Gamza Khanzadaev
Nasdaq delivers unexpected boost for Bitcoin community, but there's a catch
Bitcoin Bulls Hit With a Twist From Nasdaq: Here's What Happened
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In an unexpected turn of events, the Nasdaq has delivered what seems a blow to Bitcoin bulls, dealing a setback to the crypto market. The renowned exchange operator recently decided to halt the launch of its highly anticipated digital asset custodian business in the United States, citing the rapidly evolving business and regulatory landscape surrounding cryptocurrencies as the primary reason for their decision.

Nasdaq to Expand into Institutional Crypto Custody Services

This announcement, which was reported by Bloomberg, reverberated throughout the crypto community, sparking mixed sentiment among investors and enthusiasts alike. Nasdaq's foray into the digital asset custodian sector was eagerly awaited, with hopes that it would pave the way for greater adoption and entice mainstream investors to venture into the space.

Sticks and carrots

Despite the disappointment surrounding the custodian business, the Nasdaq aims to leverage its technological prowess to enhance its capabilities in handling digital assets. This commitment signals a silver lining amid the setback, as the exchange remains dedicated to supporting the development of the digital asset ecosystem through alternative means.

The Nasdaq's CEO revealed the decision during the second quarter earnings call, underscoring the company's unwavering dedication to the crypto industry's evolution. Though the planned venture has been halted, the Nasdaq is now shifting its focus toward fostering strategic partnerships with potential ETF issuers, including industry giants like BlackRock. These alliances are expected to drive further growth and innovation in the crypto space.

Bullish Bitcoin Signal: SEC Acknowledges Another ETF Proposal

The impact of the Nasdaq's move on the overall crypto market remains a subject of speculation. While the halt has introduced an air of uncertainty and may temporarily affect Bitcoin investors' sentiment, some experts view the Nasdaq's emphasis on technological advancement as a positive signal for the market's future.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.