Bakkt’s cash-settled BTC futures launch with promising volume 🚨 This article is 5 years old...
Bakkt’s cash-settled BTC futures launch with promising volume
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Updated: Mar. 20, 2020 at 2:45 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The much-awaited Bitcoin cash-settled monthly futures from Bakkt launched on Dec. 9, recording a volume of 1250 BTC at press time. This is a sharp contrast to the 72 BTC Bakkt saw traded on its futures debut earlier in September, which means that the company could be taking over a significant part of the market.
Bakkt just launched two new markets
The disappointing launch volumes of its futures contracts didn’t stop Bakkt from taking over the crypto market. With its Bitcoin futures volume up more than 6,200 percent since launch, the ICE subsidiary announced the launch of two new markets—Bitcoin options and Bitcoin cash-settled monthly futures.
Announced earlier in November, the cash-settled BTC futures seemed to clash with the company’s founding strategy, which was to separate itself from its cash-settled competitors. Nonetheless, the company went on with the launch and the cash-settled monthly BTC futures launched on Dec. 9.
According to Bakkt’s official announcement, the new cash-settled futures contracts will be available on ICE Futures Singapore. The regulated exchange will allow customers in Asia and abroad to gain or hedge exposure to bitcoin safely and efficiently. Contracts will leverage the settlement price of the physically-settled Bakkt monthly futures, the company said.
Bakkt’s Bitcoin options are the first CFTC regulated option on futures contracts for bitcoin. The contracts will also be based on Bakkt’s bitcoin monthly futures and settle into the underlying futures contract two days before they expire.
Cash-settled BTC futures first day volumes look promising
Bakkt COO Adam White said:
“These new contracts represent an important milestone in the development of this emerging asset class and our bitcoin product complex.”
White’s statement is in line with the company’s aggressive market takeover, which seems focused on outmuscling the Chicago Mercantile Exchange (CME). Last month, White announced that the New York-based company had opened up its custody solution to any institutions looking to store Bitcoin.
According to Bakkt’s official website, the cash-settled monthly futures saw a volume of 1250 BTC at 2:30 pm GMT. With a few more hours left before trading closes, the launch day volumes already look promising.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Bakkt
Bakkt is a new company of NYSE-operator InterContinental Exchange (ICE) designed to bring digital assets to the mainstream and help unlock the potential of this important technology.
CME Group
CME Group is a global markets company empowering participants to efficiently manage risk and capture opportunities in every major asset class..
Adam White is a former Coinbase Vice President and current COO of Bakkt.