- Bakkt has confirmed December 12, 2018 as the date they will start utilising the Intercontinental Exchange (ICE) family of network in their trading of Bitcoin futures contracts.
- The upcoming exchange is aiming to develop open technology that will fuse merchant infrastructure and existing market to blockchain.
- The arrival of the futures product might convince the U.S. Securities and Exchange (SEC) to change their stance on the cryptocurrency market.
One of the household names behind Bakkt, the Intercontinental Exchange (ICE) confirmed that the startup’s Bitcoin (BTC) futures contract will be officially launched on the 12th of December 2018, just a mere 50 days away.
The Fuss Behind Bakkt
For many, (including its affluent investors: Protocol Ventures, Eagle Seven, Horizons Ventures, Pantera Capital, Susquehanna International Group, LLP, and Alan Howard) Bakkt is the forerunner among the institutional organisations pressing into the exciting digital asset space.
In fact, many tier 1 global investment banks are currently in discussions with Bakkt to utilise their familiar exchange architecture. The rest are paying very close attention. Considering what Bakkt is in the cusp of executing, the attention it is getting is not entirely surprising.
“Bakkt is designed to enable consumers and institutions to seamlessly buy, sell, store, and spend digital assets. Formed with the purpose of bringing trust, efficiency, and commerce to digital assets, Bakkt seeks to develop open technology to connect existing market and merchant infrastructure to the blockchain.”
Details About the Upcoming Launch
According to a document issued by the ICE, the “physical” bitcoin that will back the futures contract will take place in a so-called digital asset warehouse. Said digital asset warehouse was created by both Bakkt and the ICE.
The futures trading will be routed through one of the most-renowned clearing houses in the financial world—the ICE Clear U.S. This development is seen as a positive sign by both traders and prospective Bakkt clients.
As confirmed in previous reports, the financial giant based in New York revealed that the contract will offer clients “one-day delivery.” The firm’s notice also added: “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.”
Swaying SEC’s Stand on Cryptocurrency
Joseph Young, a prominent cryptocurrency analyst and reporter pointed out that Bakkt’s arrival might be the catalyst that will entice many traders to invest in the cryptocurrency space. When that happens, it is also possible it might just convince the U.S. Securities and Exchange Commission to reconsider their stand on the cryptocurrency market.
Young added that the arrival of the futures product will bolster the liquidity of the crypto markets and might shift to a change in the SEC’s perspective of the market. This could then result in the bitcoin ETF proposal finally getting the nod.