Cryptocurrency Derivatives Series: Spotlight on Bitcoin Derivatives Market Amid Bakkt’s Launch of ETFs

The new cryptocurrency start-up, ‘Bakkt’ established by the Intercontinental Exchange (ICE), was all set to launch bitcoin futures contracts with physically delivery facilities. 

Well, the objective is to offer new tracks especially for institutional clients and retail traders to make access for cryptocurrency trading. 

ICE, which is the parent of the NYSE, originally intended to unveil Bakkt back in mid-December. Then it was deferred to late January’2019. Later on, the launch was again deferred indefinitely due to the US shut-down.

The cryptocurrency-avenue awaits the launch of ICE’s Bakkt (physically settled-BTC futures) after obtaining the CFTC’s green. While Bakkt has now given new hints of release day, in an announcement on Medium blog-spot.

On the back of the launch of Bakkt’s BTC futures contract (scheduled on September 23rd), Bitcoin’s vigorous rallies appear to have revitalized sentiments amongst the bulls. Umpteen number of the driving forces indicate that the pioneer cryptocurrency with the highest market capitalization could make lower lows before making its much-awaited parabolic advance.

The underlying price of Bitcoin is edging above $10,600 after this week’s rally observed the surge about 8.72%.

At the beginning of this week, the demand for the CME futures book was generated by the large rally in the BTC spot market, occurring during CME’s closing hours. Volumes of futures contracts are most likely to nullify and fill these gaps on the back of the above event.

While the U.S. CFTC, the Commitment of Traders (COT) report divulges that the number of institutional traders, listed as “non-commercial,” hold significantly more short contracts than long, at 3,470 to 2,285 and also denotes the positions in the futures markets at CME.