- Nasdaq could possibly be carrying out a beta testing of new cryptoanalysis tools to benefit institutional investors.
- Bloomberg, Dataminr, and Reuters are also renowned actors in the cryptocurrency analysis tools field.
Report from a very close source revealed that Nasdaq, the US stock exchange, is making plans to add prediction tool for cryptocurrency price movements to its Analytics Hub. Nasdaq launched Analytics Hub last year to offer better ways to institutional investors to evaluate market movement. Analytics Hub carries out this by making use of the natural language processing and the machine learning capabilities to parse through social media and other sources of information.
Before now, Analytics Hub has targeted the traditional assets, but added cryptocurrency lately, which is another signal that the Wall Street is showing growing interest in cryptocurrency market.
According to Nasdaq’s head of alternative data, Bill Dague:
“given the abundance of interest, we are exploring cryptocurrency related datasets.”
However, Bill quickly moderated his speech by saying:
“Whether or not we launch a crypto-related product remains to be seen.”
However, the close source to Nasdaq revealed that the stock exchange is presently carrying out a beta testing of the new cryptocurrency prediction tool and would possibly launch it later this year, November to be precise.
The source further revealed that the prediction tool would offer analysis on about 500 cryptocurrencies. The prediction tool would take a threesome approach to its analysis – using data from social media, data from crypto exchanges, and fund flows through wallets. According to the source:
“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.”
Prior to this news, Adena Friedman, the Chief Executive officer of Nasdaq, has stated earlier this year that Nasdaq was considering creating some kind of BTC futures product. Adena further revealed in April that Nasdaq may also launch a cryptocurrency exchange.
Nasdaq doesn’t seem to be the only one in this pursuit. Bloomberg, Dataminr, and Reuters are also renowned actors in the cryptocurrency analysis tools field. Dataminr already made comments about offering cryptocurrency investors and traders with Twitter data.
Would this feat appeal to institutional investors and increase the number of investment in cryptocurrency?