Bakkt set to launch Bitcoin Futures Market in the U.S.

Bakkt Launching Bitcoin Futures Next Month In U.S.

Bakkt has decided to launch its most projected bitcoin futures contracts in the United States on Sep 23, 2019, which was on hold, according to a medium blog by Kelly Loeffler on Aug 16.

The Intercontinental Exchange (NYSE: ICE) facilitated arm Bakkt now would be in the market very soon while providing an end-to-end regulated market place to the customers.

The approval from the imperative regulators made the firm capable enough to perform the role of a catalyst in the adoption of the leading cryptocurrency Bitcoin along with the respective digital assets with time.

As per the information, Bakkt would be providing the platform for daily and monthly Bitcoin futures in the United States. The project is coming after the cooperation between ICE Futures U.S.and ICE Clear US. Bakkt has acquired a New York state trust license through the New York State Department of Financial Services (NYDFS) and became a qualified custodian with this latest move which was pending since August 2018. 

The information cites that Bakkt has begun the user acceptance testing process after acquiring the self-certification from CFTC. Now, the ICE subsidiary i.e., Bakkt warehouse would be able to custody the physically delivered futures. 

“This project would offer customers unprecedented regulatory clarity and security alongside a globally accessible exchange in a market which is underserved by institutional-grade infrastructure.” — Kelly Loeffler

Bakkt Hosted Events

The blog indicated that Bakkt is executing various activities to spread the awareness about the first futures contracts that would payout by Bitcoin in the U.S. market including New York and Chicago. The firm hosted several events in the mentioned nations that were attended by regulators and a range of market participants. There is also a mention of the fireside chat with the CFTC commissioner Dawn Stump and conversation with the SEC commissioner Hester Peirce in regards with the regulation of the digital asset.

Kelly Loeffler further mentioning the importance of Bakkt pointed out the role which this ICE backed digital asset platform would play in bridging the gap between institutional investors and the mushrooming market which is currently a big area of interest from the retail sector. According to her Bakkt has the potential to solve the factors that have slowed down the institutional participation. “Whether concerns relate to a lack of liquidity, market quality, and regulation, or issues with reliability, fees, and…” 

This digital asset platform is significant for the crypto ecosystem in terms of participants, platforms, and applications. Reportedly, Bakkt’s objective is to provide the trusted ecosystem and to do that the firm has designed the regulated structure in the form of a warehouse to provide secure custody of bitcoin.

Bakkt is “protected by $125 million in insurance” as per the details.

Bitcoin Futures Market Competition

There is no doubt in the fact that soon there would be competition in the Bitcoin futures contracts market once the institutional market adoption starts gaining progress.

Reportedly, the competition can be faced between BakktLedgerX, and ErisX (funded by U.S. based financial services company TD Ameritrade- broker that offers electronic trading platform). Purportedly, few comparable products from the digital asset exchange Seed CX and a crypto startup trueDigital are on the cards to jump in the market.

From last week, Bitcoin has also escalated and shown a volume (24h) of $15,573,028,748 USDwith a total circulating supply of 17,887,225 BTC.

Image by klimkin from Pixabay