Bakkt, a subsidiary of The Intercontinental Exchange (ICE), has announced the release of BTC physical delivery futures. The new financial instrument is due to appear on September 23 this year.
Long-awaited futures: Bakkt enters the market
Bakkt announced in its blog that the New York State Department of Financial Services has approved the creation of a subsidiary custodian of the Bakkt Trust Company. It paved the way for the long-awaited physical delivery of BTC futures.
Before Bakkt, there were only BTC futures without physical delivery of the asset, such as those offered by CME Group. The difference between the two types of futures is that when they are not physically delivered, on the day of settlement, the trader receives not the asset itself, but the equivalent of its price in US dollars. With the advent of Bakkt, traders will be able to settle in the asset itself, that is, in BTC. It can support the demand for the asset, which will lead to an increase in its value.
Bakkt futures will be traded on the ICE Futures exchange. The Bakkt parent structure will also take on clearing. The company will offer monthly and daily futures contracts. Their price will not be based on the "unregulated spot market". According to the company, the pricing of the asset will be transparent, and new contracts will help to determine the BTC basic value.
Bakkt has scheduled a full launch on September 23. Until then, the platform will run in the test mode.
Bakkt issues futures with physical delivery. Bakkt planned to release its futures with physical delivery in the fall of 2018. However, the US authorities delayed the decision on the license. Therefore, the company had to change the deadline several times. As a result, testing of the platform began only on July 22 this year.
Editor: Alyona Nabok