Nasdaq’s Groundbreaking Shift to 24-Hour Trading

In a move to capitalize on the growing global appetite for U.S. stocks, Nasdaq Inc. announced on March 7, 2025, its plans to introduce 24-hour trading on its equities exchange, with implementation slated for the second half of 2026, pending regulatory approval. This decision positions Nasdaq as the latest U.S. exchange to embrace a round-the-clock trading model, mirroring the continuous operation seen in cryptocurrency markets. While the shift promises to meet surging demand from international investors, it also raises questions about its implications for market volatility, liquidity, and even the interconnected crypto ecosystem.

Driving Forces Behind Nasdaq’s 24-Hour Trading Vision

Nasdaq’s initiative aligns with a broader trend among U.S. exchanges seeking to adapt to the evolving needs of retail and institutional investors. Earlier in February 2025, Cboe Global Markets announced plans to extend U.S. equities trading to 24 hours, five days a week, driven by rising global demand, particularly from Asia-Pacific markets like Hong Kong, Japan, and Australia. Nasdaq’s move follows suit, responding to the exponential growth in exchange-traded products (ETPs) tracking the Nasdaq-100 Index—over 56 ETPs have launched in the past five years, with 98% introduced outside the U.S., according to Nasdaq President Tal Cohen. This global interest reflects the increasing desire for non-stop access to U.S. equities, inspired by the 24/7 trading model long established in cryptocurrency markets.

The announcement comes at a pivotal moment for U.S. financial markets, which are navigating turbulence from recent Trump administration policies, including tariff threats and federal job cuts by Elon Musk’s Department of Government Efficiency (DOGE). These policies have triggered a stock market sell-off, pushing the Nasdaq into correction territory, as noted in recent market data. By expanding trading hours, Nasdaq aims to provide investors with greater flexibility to respond to off-hour news and global events, potentially stabilizing market participation during periods of uncertainty. However, the exchange acknowledges risks such as overnight volatility and lower liquidity, planning to collaborate with industry participants to mitigate these challenges.

Implications for the Crypto Market and Beyond

Nasdaq’s shift to 24-hour trading could have profound ripple effects, particularly for the cryptocurrency market, which has long operated on a continuous trading schedule. The crypto ecosystem, including major assets like Bitcoin and Ethereum, has thrived on its ability to offer round-the-clock trading, attracting retail investors and institutional players alike. Nasdaq’s adoption of a similar model could blur the lines between traditional equities and digital assets, potentially driving more institutional capital into crypto markets as investors seek to arbitrage opportunities across asset classes. For instance, hedge funds and high-frequency traders might leverage the extended hours to execute strategies that capitalize on price discrepancies between stocks and crypto, especially during volatile periods like the recent U.S. market correction.

However, this convergence could also intensify competition between traditional exchanges and crypto platforms. Crypto exchanges like Binance, Coinbase, and Kraken, which already dominate 24/7 trading, may face increased pressure to innovate further, such as offering hybrid products that combine equities and digital assets. Conversely, Nasdaq’s move could legitimize crypto trading practices, encouraging regulatory bodies to harmonize rules across both markets, potentially easing the path for crypto’s integration into mainstream finance. Yet, challenges remain—crypto markets are known for their volatility and lower liquidity during off-peak hours, issues Nasdaq will need to address to ensure a smooth transition to 24-hour trading.

For retail investors, the shift promises greater access to U.S. equities, especially for those in time zones outside the U.S., such as Asia and Europe. Brokerages like Robinhood and Interactive Brokers, which already offer round-the-clock U.S. stock trading, stand to benefit, potentially driving more retail participation in both equities and crypto. However, the success of Nasdaq’s plan hinges on regulatory approval and the exchange’s ability to upgrade infrastructure, such as the securities information processor (SIP), to handle extended hours effectively.