Cryptocurrencies have received a great deal of attention over the last two years, far more than during the original bull run in 2017 and 2018.
While other companies like Coinbase have established themselves as cryptocurrency exchanges, Nasdaq has instead given the necessary technology to the market’s participants.
Nasdaq Digital Assets plans to provide a state-of-the-art custody service that includes liquidity and execution services. The emphasis will be on the connection, availability, and efficiency challenges of the sector, with an added layer of safety and security. The issuance is dependent on regulatory clearance.
Cohen said, “Demand from institutional investors to participate in digital assets has surged over the last several years, and Nasdaq is well-positioned to promote wider adoption and achieve sustainable development.”
Currently, the correlation between Bitcoin and conventional assets is at an all-time high, although its correlation with the S&P 500 also hit a record a while ago.
A recent study conducted by Kaiko suggests that high and variable inflation is the primary cause of a positive connection between bonds and risk assets during the previous month since inflation tends to depress the value of all assets.
After dropping throughout the summer, Bitcoin’s connection with both bonds and stocks resumed its upward trend in September. The combination of inflation concern and Fed tightening has resulted in a record decrease in both risk and fixed-income assets, putting standard asset allocation strategies to the test.
Regarding the combination of equities and cryptocurrencies, investors may choose to consider that it may be a favourable development for the digital asset business.