Bakkt Launches Two New Regulated Trading Products Ahead of Schedule

Bakkt launched its market for physically-settled Bitcoin futures in September this year, just launched its Options tied to its Bitcoin futures today.  

Backed by the same owners of the New York Stock Exchange, Bakkt launched two new products, including Bitcoin monthly options and Bitcoin cash-settled futures. Cash-settled futures are tied to Bakkt’s first contract starting trading through ICE Futures Singapore, while over 1200 lots have already been traded in the new contract. The idea was to allow institutional investors who have not had a lot of exposure to crypto a way into investing in digital assets, including Bitcoin.  

According to Bakkt, the Bitcoin monthly options are based on monthly Bitcoin futures contracts and are regulated by the Commodity Futures Trading Commission (CFTC).  

Adam White, COO of Bakkt previously indicated that the cash-settled Bitcoin contracts would not be available until 2020. However, Intercontinental Exchange, Bakkt’s parent company, was reportedly fast-tracking the launch and has been in talks with the Monetary Authority of Singapore (MAS). As the MAS regulates the cash-settled futures for trading on ICE Futures, it became the first regulated US-based exchange breaking into the Asian derivatives market.  

In a Medium post, White mentioned, "These new contracts represent an important milestone in the development of this emerging asset class and our bitcoin product complex. Backed by the strong support and commitment of the Intercontinental Exchange team, we have great momentum going into 2020 and an exciting product roadmap that includes new trading products, an expanded custody offering, an innovative consumer payments app, and more.” 

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