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Bakkt’s cash-settled BTC futures launch with promising volume

Bakkt’s cash-settled BTC futures launch with promising volume

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.

Volume and underlying price for Bakkt’s Bitcoin cash-settled monthly futures
Volume and underlying price for Bakkt’s Bitcoin cash-settled monthly futures (Source: ICE)
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Priyeshu Garg
Author

Priyeshu Garg

Crypto Analyst @ CryptoSlate

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in computer science engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving transportation problems at his company (Ola), he can be found writing about the blockchain or roller skating with his friends.

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