Nasdaq Explores Crypto Price Prediction Tool – Report

News and Analysis

Nasdaq, the second largest stock exchange in the world after NYSE, is reportedly preparing to add tools to predict the price movements of crypto assets to its Analytics Hub. The new tool will provide institutional investors with the ability to trade hundreds of crypto assets, Coindesk reported on Tuesday citing an unnamed source.

Bill Dague, the head of alternative data at the Nasdaq said:

“Given the abundance of interest, we are exploring cryptocurrency related datasets… Whether or not we launch a crypto-related product remains to be seen.”

Nasdaq’s Analytics Hub was launched last year and uses machine learning and natural language processing (NLP) capabilities to parse through social media and other alternative data sources to give investors a better way to assess market movement.

The Analytics Hub to date has focused on traditional assets, but the addition of predicting the price movements of crypto assets seems to be another signal of Wall Street’s growing interest in the emerging asset class.

The new function being is reportedly in the beta testing phase ahead of the November launch. Interestingly, sources close to the project says that the service would cover around 500 digital assets, and that Nasdaq takes a three-pronged approach to its analysis, looking at fund flows via wallets, data from exchanges and social media.

“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,” the source added.

The news comes after Nasdaq CEO Adena Friedman said earlier this year that the exchangewas looking into offering some sort of bitcoin futures product. Further, in April, she said Nasdaq would even consider creating a crypto exchange.

In July it was reported that Nasdaq hosted a closed-door meeting in Chicago with representatives from about half a dozen companies, including traditional exchanges as well as Gemini and other crypto markets with focus of the gathering being directed at encouraging the industry to take measures to improve its image and validate its potential role in global markets.

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