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Bitcoin Futures Platform Bakkt Begins Testing Today

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Bakkt

Bakkt

It’s been a long road for Bitcoin futures platform Bakkt. The platform—developed by NYSE parent company Intercontinental Exchange (NYSE:ICE)—has faced a myriad of launch delays due to regulatory approval. It’s still waiting now, but in the meantime, it has begun testing its Bitcoin futures contracts today.

Here’s what we know.

Bakkt is Testing Bitcoin Futures Contracts

The company announced in May that it would begin testing its contracts in July. It later settled on the date of July 22, which is today. The company has not disclosed what is involved in the testing process but, according to sources, it is testing two different types of contracts today: a daily contract and a monthly contract.

Bakkt will list them, trade them, and clear them through ICE Futures US and ICE Clear US.

Until ICE receives regulatory approval for Bakkt, it cannot take the platform live. But there’s no harm in preparing for an official launch in advance.

Launch Delays

It has been almost one year since Bakkt was unveiled. The platform aims to offer potentially the first physically-settled Bitcoin futures in the US, but as stated, has had to delay its launch multiple times.

The initial launch date was set for December 2018. That date was then pushed back to January 2019. Subsequently, ICE announced an “indefinite delay” as it continued to work with regulators to secure approval.

>> How Will the Crypto Markets Perform in Coming Years?

Cash-Settled vs. Physical-Settled

Bakkt will offer US traders “access to physically-settled bitcoin futures contracts.” These differ from the “cash-settled futures contracts” that Chicago-based exchanges CME and Cboe have offered since 2017.

The difference is in what a trader will receive when the contract expires. With cash-settled contracts, traders receive the cash equivalent to the contract’s value when it expires. However, with a physically-settled contract, traders receive the underlying commodity, which in this case is Bitcoin.

Will Bakkt have to wait much longer do you think? Will the test run tell us a lot more about an official launch? What are your thoughts?

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Bakkt is All Set to Introduce Bitcoin Futures in September

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Bakkt

Bakkt

Bakkt is all set to launch its much-awaited platform for Bitcoin futures.

When cryptocurrency first grabbed the attention of the global public, it was still looked upon as a novelty and something far too chaotic to be regulated by the relevant authorities. However, much has changed over the past couple of years as a range of fresh products have been launched, and perhaps the most important one is Bitcoin futures.

Everything is on Schedule

Earlier on this year, cryptocurrency firm Bakkt announced that it was all set to launch a fully regulated Bitcoin exchange in September. Moreover, the company also stated at the time that Bitcoin futures were going to be offered in the said exchange. It goes without saying that there is a lot of excitement around this platform, and recently, the company confirmed that it is on track for the launch.

The new platform that is going to be launched by Bakkt is aiming to make an investment in Bitcoin easier for most customers. However, it should be pointed out that the primary focus for Bakkt is to attract institutional investors to the platform and if it can do that, then that could prove to be a major breakthrough for the entire crypto space.

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In addition to that, the Bitcoin futures contracts that are going to be traded on the platform are going to be settled in Bitcoin. This particular feature makes it especially advantageous for institutions that might want to avoid any kind of volatility. Over the years it has been noticed that advanced platforms often failed to meet their deadlines when it came to launches.

However, Bakkt has managed to buck the trend and announced that it is going to launch its new platform on September 23 as planned. It is a platform that could have far-reaching consequence for the entire crypto space if it does manage to attract a considerable chunk of institutional investors.

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Bakkt is All Set to Launch Options on Bitcoin Futures in December

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Bitcoin futures

Bitcoin futures

Over the past few years, the crypto sphere has come a long way to emerge as one of the most exciting investment options for investors, and the introduction of Bitcoin futures was one of the bigger developments in this regard. In a new development, the highly influential International Exchange (IE) has stated that it is now going to introduce options in Bitcoin.

Key Details

The service is going to be launched on Bakkt, one of its subsidiaries, and among the most popular destinations for high-level trades in the crypto space. The announcement was made by Bakkt late Thursday, and it goes without saying that it has created buzz in the market.

In the announcement, Bakkt stated that this is the first time that regulated options are being provided on Bitcoin futures. It is a significant development for investors who are interested in the crypto space.

Moreover, it is also important to note that Bakkt also serves institutional customers and is well known for its merchant services. The availability of both futures and options will make it more palatable to professional traders.

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The Chief Executive Officer of Bakkt Kelly Loeffler wrote about the development in a post on Medium. She said, “The Bakkt Bitcoin Options contract will be based on the benchmark Bakkt Monthly Bitcoin Futures contract and represents another important step in developing this asset class for institutional investors, their customers, and investors.” One of the more important features of the whole project is that customers who buy these options will also be able to settle their positions in cash if they so wish. Considering the fact that the company launched its Bitcoin futures only a month ago, it must be said that it has been quick to introduce Bitcoin options, and the introduction of the new product will ensure that more traders participate in the platform in the months to come.

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Bitcoin Futures CME Trading Generates $100 Billion in Volume Since 2017

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Bitcoin futures

Bitcoin futures

One of the products that have become particularly important to the continued growth of the crypto industry is Bitcoin futures. The derivative product has become one of the most heavily traded crypto-based securities.

Key Drivers

The Chicago Mercantile Exchange (CME) revealed its actual figures with regard to this particular product yesterday. The futures contracts have been traded on the exchange since 2017, and one of the top executives revealed that the total volume of the trades has been pegged at $100 billion.

Tim McCourt, who is the Global Head of Equity Index Alternative Investment Products and Group Managing Director at the exchange, stated, “CME Bitcoin futures have surpassed $100 billion in total notional value traded since their launch in December 2017.” It is an indication of the sort of money that has come into the crypto market and specifically for Bitcoin futures.

Moreover, the CME represents the mainstream financial sector, and such trading volumes indicate that institutional money has come into the sector in a big way over the past few years. For many years, crypto experts have stated that the entry of institutional money could lead to a significant rise in Bitcoin prices, and it remains to be seen how it all pans out in the coming months.

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McCourt also stated that the futures contracts in question have evolved significantly over the past two years, and currently, CME operates one of the most liquid Bitcoin derivatives markets in the world. High liquidity is the sign of a mature market and indicates that the price of a security is now going to change massively if traded frequently. Institutions generally look for such securities, and it is possible that the liquidity in the exchange eventually led to such high volumes of trading over the past two years. The Bitcoin futures market is still new, but it has truly taken off over the past year or so.

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Bakkt’s Bitcoin Futures Goes Live

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Bitcoin futures

Bitcoin futures

Over the past few years, the Bitcoin futures ecosystem has grown at a remarkable pace, and it is something that is surely going to stay for years to come. Initially, these futures contracts had been launched by a handful of exchanges, but over the past year or so, the number has increased considerably.

Futures Trade

In a development that will come as another massive boost to the Bitcoin and cryptocurrency ecosystem, the New York Stock Exchange’s owners, ICE, through its crypto exchange Bakkt has decided to launch futures contracts that will pay out traders in Bitcoins. The launch has gone through, and trading has already started in this new security. The very first trade was completed on Sunday.

Over the years, it has been noted by many experts that mainstream investors are often hesitant about investing in cryptocurrencies despite having an interest in them. The NYSE launched the new Bitcoin futures contract with the sole purpose of tapping into such investors. Intercontinental Exchange (ICE), which is the owner of the NYSE, introduced the security in its futures exchange on Sunday. The firm launch through its crypto exchange Bakkt, which is currently one of the best known and innovative cryptocurrency exchanges in the world.

>> Analyst Predicts Bakkt Will Build Trust in Crypto Markets

The ultimate aim of many individuals in the crypto space is to ensure that retail investors and institutional investors find it worthwhile to invest in Bitcoin. Trading in cryptocurrencies and paying with them is perhaps the best place to start when it comes to attracting them. According to reports, this was the primary motivation behind the introduction of this product.

Over the past months, it has become abundantly clear that institutions are becoming more and more interested in Bitcoin as well as in the larger crypto space. If that is the case, then it is only natural that products are being introduced that could help bring them in and the introduction of Bitcoin futures is a step in the right direction.

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Bakkt to Launch Cash-Settled Bitcoin Futures on December 9

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Bakkt

Bakkt

The cryptocurrency industry has come a long way from the days when it used to be tough for people to buy tokens online and hence, the emergence of Bitcoin futures did not come as a massive surprise for most market watchers. So what does newly-created crypto exchange Bakkt have in store? Let’s dig in.

Key Expansion

A few months back, Bakkt announced that it was going to launch a Bitcoin future product that could be settled in cash. That announcement naturally caused a lot of enthusiasm in the crypto sphere, and today, the company made another important announcement. On Friday, Bakkt announced that it is all set to launch its freshly minted product on December 9, 2019.

Bakkt is the cryptocurrency venture that is owned by the Intercontinental Exchange (ICE), and the announcement came from the latter. The new product in question has been christened the Bakkt Bitcoin Cash Settled Monthly Futures and is going to be offered by ICE Futures Singapore. The clearing duties will be taken up by ICE Cleat Singapore.

Major Milestone for Bakkt

In this regard, it should be noted that both these entities are regulated by the Monetary Authority of Singapore. The launch of the Bitcoin futures product is going to be a major milestone for Bakkt and also for the crypto sphere in general.

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The Chief Operating Officer and President of both ICE Clear and ICE Futures Singapore, Lucas Schmeddes, commented on the product: “Our new cash-settled futures contract will offer investors in Asia and around the world a convenient, capital-efficient way to gain or hedge exposure in bitcoin markets.”

Ultimately, the launch of such a cash-settled Bitcoin futures product is an attempt from the company to tap into institutional money. Considering the fact that Singapore is one of the biggest financial hubs in the world, it is perhaps a prudent move from Bakkt to centralize the offering in the city-state.

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