Intercontinental Exchange Bakkt Bitcoin Futures Trading Platform Goes LiveBy Sep 23, 2019 2 Min Read
Launched as of 8 pm EST on Sept. 22, Bakkt’s physically settled Bitcoin futures trading has launched and is now live for on the Intercontinental Exchange (ICE). The product was designed to remake Bitcoin as a mainstream investment for the world’s investment managers.
ICE Futures US, one of the world’s largest commodities markets is now offering Bakkt Daily and Monthly Bitcoin Futures, the first physically settled cryptocurrency contracts traded on a federally regulated exchange.
Endowment funds or brokerage firms that trade contracts will be able to channel their payments and acquire a guarantee that their Bitcoin will be delivered through the ICE clearinghouse that settles other commodities contracts with the launch of Bakkt futures.
After thirteen months of deliberation from the regulators and multiple delays, Bakkt announced on Aug. 16 of 2019, the platform has gained approval from the US Commodity Futures Trading Commission (CFTC) and announced that trading would be available starting today. Bakkt’s Bitcoin Warehouse has been accepting withdrawals and deposits in September and is now processing the daily and monthly trading of the Bitcoin futures.
Bakkt’s physically settled Bitcoin futures could allow clients to get Bitcoin rather than fiat currency in its equivalent value once the contract expires, compared to the Bitcoin futures trading options that the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) offer.
The launch of Bakkt’s platform has been highly anticipated as many speculators believe that the product is a leap forward for the growing adoption and acceptance of Bitcoin and the crypto market in general. Crypto analyst Thomas Lee tweeted on Sept. 19, mentioning:
“I am very positive on Bakkt and its ability to improve trust with institutions to crypto.”
Kelly Loeffler, Bakkt’s CEO, stated:
"The funds that trade on our exchanges expressed to us that they don't want to deal in today's unregulated markets, and want end-to-end federal oversight, on the level of the NYSE, to feel safe trading in Bitcoin."
CME Group also announced that it would offer options on its Bitcoin futures contracts starting in the first quarter of 2020, at the same time as CBOE. In a recent announcement, CME iterated that the launch of Bitcoin options is aimed to provide clients with “additional tools for precision hedging and trading.”