Cryptocurrency Derivatives Series: Updates on Bakkt’s Launch of Bitcoin Futures

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 shutdown.

Bakkt has made some announcement on the Intercontinental Exchange’s independent crypto initiative, divulged that it would be unveiling its physically-backed futures contract in June. 

Well, according to a Medium update from Kelly Loeffler, the CEO, the product will go in two forms: 1) a daily settlement future; 2) monthly futures.

This clarifies the mounting rumors that the platform was looking to unveil a vehicle for a same-day market. It is expected that the soft launch of this product by July, illuminating that it intends to iron out probable twists in the weeks to come. 

The launch of ICE’s Bakkt (physically settled-BTC futures) now awaits CFTC’s green signal. While Bakkt has now given new hints of release day, in an announcement on Medium Blogspot.

Kelly Loeffler, mentions“as we work through regulatory approvals, we are mindful that the infrastructure we are building has the potential to create more opportunities for digital assets to grow in relevance and trust — by being more secure, investible and useful. 

As a former marathoner, this point in time recalls the stage in the training regimen when you’re putting in long runs with your training team. Race day is approaching, and there is more work to be done. I’m proud to be going the distance with this growing team and of the culture, we are building, while bringing digital assets into the mainstream economy.”

This latter report comes in just a few weeks after Bakkt was divulged to be striving with the major U.S. bank BNY Mellon. 

As we reported in our previous posts, the exchange was working closely with the institution to ensure the safeguarding of digital asset private keys. At the same time, it was divulged that Bakkt had acquired Digital Asset Custody Company (DACC) while securing a $100 million insurance policy with “global insurance carriers.”

As explained in detail, ICE Futures U.S. filing with the CFTC, bitcoin futures would be listed on a federally regulated futures exchange in the coming months.

Overall, crypto radicals should now be holding their nervous for the launch of Bakkt until June.

While Bitcoin price has continued its bullish streaks, trading up over 12% at its current price of $7,750, up from daily lows of $6,800 which were hit yesterday.

Currency Strength Index: FxWirePro's hourly BTC spot index was at 147 (which is highly bullish), while the hourly USD spot index was at -26 (mildly bearish) at 07:57 GMT. 

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex