First Physical Bitcoin Futures is Coming? Bakkt Will Begin Testing on 22 July!By Jun 15, 2019 2 Min Read
The first physical Bitcoin (BTC) futures is coming? The Intercontinental Exchange’s pending bitcoin platform Bakkt recently announced user acceptance testing (UAT) on BTC futures on 22 July. The UAT includes the listing and trading of BTC futures at ICE Future U.S. and clearing at ICE Clear US, as written by the COO of Bakkt, Adam White on 13 June.
Adam said the launch will set a new standard for accessing the cryptocurrency market. He believed that institutional participation in crypto remains low due to limitation in market infrastructure and regulatory certainty. As a result, crypto futures market results in lower trading volumes, liquidity and price transparency compared to more mature markets such as ICE’s Brent Crude futures.
To enhance the accessibility of Bakkt’s BTC futures for institutions, Bakkt intends to bring the following features:
1) Block trades;
2) a fee holiday through the end of the year to encourage trading;
3) market maker incentive programs to encourage liquid markets; and
4) integrations with ISVs and regulated brokerage platforms.
Adam echoed the launch of BTC futures to the first human landing on the moon. He stressed that the UAT launch date is two days after Apollo 11’s 50th anniversary. He said “Just as engineers in the 1960’s identified problems in planning a spacecraft’s lunar trajectory, we are working to meet today’s identifiable market risks with problem-solving solutions.”
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