Nasdaq, the second-largest stock exchange in the world by market capitalization, is on the move to add cryptocurrency datasets to its market analytics tool. It would initially be integrated into the company’s data Analytics Hub, which was launched in 2017 to make unstructured data more intelligible for the investors.
Entrance To Crypto
The announcement traces its roots from a closed-door meeting held by Nasdaq to discuss the project and to tackle the steps on legitimizing the cryptocurrency industries across international markets. Some of the participants included representatives from the Winklevoss twins’ Gemini crypto exchange, a business owned by the first Bitcoin billionaires.
The head of the company’s Alternative Data, Bill Dague, cleared up that the movement is due to the given abundance of interest in cryptocurrency. But Nasdaq remains unsure whether or not to launch a crypto-related product in the future. CEO Adena Friedman added that the platform might consider launching a crypto trading system if the market becomes more mature and legally regulated. Regardless, the improvement in its Analytics Hub is already a big step towards success.
The Analytics Hub is a platform that would use machine learning to evaluate data from a group of sources (e.g social media) to predict market movement. It will ultimately provide institutions with timely, relevant, and reliable market data. The classification of the hub currently covers a range of curated data assets such as the Environmental, Social, Governance data or “eVestment ESG”, “Global News Exposure” investment risk management tool, and the “iSentum Social Media Sentiment” data set.
Pioneers and Other Institutions
Many companies have added crypto data sets to their analytics tools years before. But to this day, the only large-scale financial platform that provides cryptocurrency market data to investors in a broader financial market is Canadian firm Thomson Reuters. Sam Chadwick, the director of strategy in innovation and blockchain at the firm, announced last month that their company’s Eikon, a platform similar to Nasdaq’s Analytics Hub, had been thoroughly useful since its launch in 2016. He stated, “we have been engaged with CryptoCompare since their involvement in our blockchain hackathon in September 2016, and continue to be very impressed by their approach to coverage of these challenging markets. This partnership puts pricing data for this emerging market alongside other asset classes, giving our customers a more comprehensive TradingView in Eikon.”
According to other faces involved in this business, the entrance of institutional investors into the cryptocurrency ecosystem is expected to stabilize the market and the major cryptocurrencies within it. We have yet to see if Nasdaq’s project will contribute to the stabilization.