Bakkt the most awaited Intercontinental Exchange (ICE) backed Bitcoin Futures Trading and Digital assets custody platform is live on Monday, Sep 23rd, 2019. The Bitcoin futures trading is now publically available for the institutional investors on the ICE platform.
Bakkt has founded in 2018, by the ICE which is a parent company of the New York Stock Exchange (NYSE). Bakkt initially announced the launching of its futures trading in 2018, however, after that it got delayed twice, due to the pending work, less volume of interest, and fulfillment of several other regulatory issues concerned with the custody of the digital assets.
Reportedly, this year in July Bakkt began testing its futures trading platform while waiting for the approval to take the platform live from the regulatory authorities. It is considered that Bakkt is the 1st platform of its kind which has got the United States regulators’ approval. Now, the platform is ready to facilitate the cryptocurrency futures trading market which is till date underserved by institutional grade.
KoinPost earlier reported that the New York State Department of Financial Services (NYDFS) had given the New York state trust license and made Bakkt a suitable custodian of Bitcoin warehouse including several other digital assets which is a hard-earned success for the company, to create the path for the public to trade digital assets seamlessly in everyday life.
On August 16, CEO, Bakkt, Kelly Loeffler stated that the platform is ready to offer its customers an unprecedented experience in terms of regulatory clarity combined with global access to trade in the cryptocurrency market.
What Comes With Bakkt
As displayed on ICE’s website “the physically settled monthly futures contract for bitcoin which is held in Bakkt Warehouse” is launched around 8 PM EST on Sept. 22 (00:00 UTC Sept. 23) for trading on the ICE platform.
Reportedly, the New York Stock Exchange’s sister company Bakkt is offering daily and monthly physically-settled bitcoin futures trading. To be precise, there would be an expiration date which is attached with the Bakkt’s futures contract. The contract specification is projecting that bitcoin would be supplied on the second business day after the contract’s date. However, in other commodities case, the basic asset is not delivered before 30 days period like Frozen Orange Juice Trading, Cocoa futures contract, besides others.
In Bakkt’s bitcoin future contract offering, the one-day rendering would be available for institutional-grade investors who are well acquainted with the cryptocurrency market and the 30 days would be available for the general public who are not well versed with the high mounting and unpredictable digital asset trading market.
Here is it interesting to note that at the global derivatives marketplace Chicago Mercantile exchange group (CME) and the largest U.S. options exchange- Chicago Board Options Exchange (CBOE) offers bitcoin futures contract since 2017, which are cash-settled (a subsidiary issue or a side-bet) on the cryptocurrency’s price. In case of Bakkt, once the contract expires, the customers would be able to settle the transaction in bitcoin of its physically settled futures contracts rather than in fiat currency.
As per the company’s FAQ section, the data feed subscription fee would be required soon from the members. However, at present, it is available without any cost until June 2020.
Bakkt’s warehouse has been activated for futures since Sep 9. The company’s warehouse is protected by $125 which is signified by the announcement through a Twitter post on Sep 9.
However, still, it’s not yet revealed how much bitcoin has been transmitted since the opening of the warehouse on Sep 6, 2019.
KoinPost will keep on updating its viewers with the upcoming advancements happening in Bakkt, till then stay tuned and leave your
Image by Pete Linforth from Pixabay comments below…
Tags: Bakkt, Bitcoin Futures Contract, Digital Asset, CBOE, CME, NYSE, Cryptocurrency, CFTC
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