- This new product is good news for institutions as they would now receive adequate custody services
- The new option is based on Bakkt Bitcoin’s monthly future contract and is available for users who can not trade on the platform’s physically delivered contracts
- Bakkt is not slowing down in its effort to drive mass adoption of bitcoin in the world
The Intercontinental Exchange (ICE) ‘s digital asset platform, Bakkt, has launched the first regulated Bitcoin options and cash-settled futures in the U.S.
According to an official blog post by Bakkt COO Adam White, the platform is now putting plans to use its physically settled BTC contracts as a benchmark to build complementary products.
This follows the announcement on November 11 that Bakkt had received the go-ahead from the New York Department of Financial Services (NYDFS) to offer custody services to any institution.
Adam wrote:
“By starting with the physically delivered Bakkt Bitcoin (USD) Monthly Futures, we have a benchmark contract that provides the foundation for us to develop complementary products based on the needs of our customers.“
The newly launched products include Bakkt Bitcoin (USD) Monthly Options and Bakkt Bitcoin (USD) cash-settled Futures.
The contracts are great for the crypto space, as they represent an important milestone in the development of this emerging asset class and Bakkt’s bitcoin product complex.
Moreover, the products that are fully regulated by the U.S. federal government are expected to bring some much-needed trust and utility to digital assets.
Backed by the strong support and commitment of the Intercontinental Exchange team, the newly launched products offer significant momentum for crypto custodial solutions. Experts believe this is an exciting product roadmap that includes new trading products, an expanded custody offering, an advanced consumer payments app, and much more.
Bakkt now believes that the fully regulated contract provides a critical link in the adoption of Bitcoin.
Introducing the First Fully Regulated Options
The cash-settled futures product is based on the settlement price of the benchmark – Bakkt Bitcoin’s monthly future contract and provides an option for participants who are unable to trade on the platforms physically delivered contract.
The new contract will be available on ICE Futures Singapore, the approved exchange in Singapore.
On the other hand, the Bakkt Bitcoin monthly options offer important hedging, trading, and income-generating opportunities to market participants around the world.
The monthly options are the first regulated BTC futures contract under the oversight of the United States Commodity Futures Trading Commission (CTFT). Price discovery occurs within a federally regulated market and has no exposure to unregulated Bitcoin spot markets.
Bakkt Gaining Momentum in Crypto Space
Bakkt platform is currently one of the most promising crypto-related enterprises, as its physically settled BTC futures have become one of the most exciting and lucrative products in the crypto market.
While the platform reported low volumes at its launch on September 23, 2019, Bakkt has continued to grow, increasingly gaining momentum in the market.
On December 3, 2019, Bitcoin futures interest on Bakkt hit an all-time high of $6.5 million, breaking its earlier record from late November for BTC futures trading on Bakkt, which accounted for 5,600 BTC on the day.
