Nasdaq tests new tool to predict crypto price movements – Report

Nasdaq is reportedly working on a tool that will give institutional investors the ability to predict price movements of crypto assets.

A source familiar with the ongoing developments told CoinDesk that the American stock exchange is planning to add tools that will enable prediction of crypto price movements to its Analytics Hub. The source added that the crypto functionality is currently in the beta testing phase and expected to be rolled out in November.

Launched in May 2017, the Analytics Hub is a platform that provides the buy side with investment signals that are derived from structured and unstructured data, and unique to Nasdaq. Up until now, the platform has been focusing on traditional assets.

The source further said that the new functionality would provide sentiment on nearly 500 crypto assets. The tool takes a three-pronged approach for its analysis, which includes 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 said.

Recent reports have also suggested that Nasdaq is seeking to list cryptocurrencies on its platform in 2019.

Bill Dague, Nasdaq's head of alternative data, told CoinDesk that "given the abundance of interest, we are exploring cryptocurrency related datasets,” but went on to add "Whether or not we launch a crypto-related product remains to be seen."

In June 2018, Thomson Reuters announced that has expanded its sentiment data offerings to track the top 100 cryptocurrencies.