Bakkt Bitcoin futures to go live in December on Bakkt Exchange. Bakkt, backed by the Intercontinental Exchange, parent company of the NYSE, will launch on December 12th, pending regulatory approval. We’ve talked about Bakkt before, and we think this is going to be massively bullish for cryptocurrency. What do you think?
ICE announced Monday that Bakkt could begin offering physically settled Bitcoin futures contracts in December. Last year, when futures contract trading began for Bitcoin, the market pushed up to all time high. The difference between the CBOE futures contracts and Bakkt’s offerings is the fact that Bakkt will hold the bitcoins backing the futures contract in their ICE Digital Asset Warehouse. The CBOE’s futures were held in cash. Bakkt is still waiting on the Commodity Futures Trading Commission (CFTC) to sign off.
These futures contracts will be cleared through ICE Clear US, another subsidiary of the exchange which notably owns the NYSE.
“Each futures contract calls for delivery of one bitcoin held in the Bakkt Digital Asset Warehouse, and will trade in U.S. dollar terms. One daily contract will be listed for trading each Exchange Business Day,” the announcement read.
Bakkt was first announced earlier this year when ICE announced its intention to develop “an open and regulated, global ecosystem for digital assets.”
At the time, the exchange also noted it would offer a one-day bitcoin futures contract, meaning clients could cash their futures products out to receive Bitcoin, rather than cash.
What do you think? Do you think this is bullish? Are you an institutional trader and plan to use Bakkt? What do you think Bakkt will do for cryptocurrency and the market? We’ve talked about a few bullish news coming out for late 2018 and early 2019, including Goldman Sachs and Fidelity Investments planning on entering the market. Let us know on our Facebook page!