September 23, 2019, | AtoZ Markets – The long wait for the Bakkt Bitcoin Futures is over as the platform for physically delivered Bitcoin futures trading is live on the ICE backed Bakkt Exchange. The platform was one of the trending topics for the crypto community from the past few months since it is first of its kind platform that is the United States regulated.
First Bakkt Bitcoin Futures traded at $10,115
Trading is now live for Bakkt’s regulated, physically-delivered daily and monthly bitcoin futures, with the first trade executed at 8:02 pm ET on Sunday at a price of $10,115. Institutional traders now have a market for physically-delivered bitcoin futures, which means that actual bitcoins are held in Bakkt’s warehouse and will be delivered at the expiry of the contract.
After spending a whole year in promotions and explanations, and delays in the launching due to regulatory concerns, Bakkt has finally launched the platform. The announcement for the confirmation of the launch was made on 26th August when Bakkt secured the approval from the US Commodity Futures Trading Commission (CFTC).
Bakkt is the first in the business to offer physically-settled Bitcoin futures, however, Chicago Mercantile Exchange and the Chicago Board Options Exchange (CBOE) offer Bitcoin futures as well, but they are settled with cash. This means that the customer gets real Bitcoins once the equivalent amount of cash is given at the end of the contract.
More about Bakkt’s Bitcoin Futures
ICE Futures US has previously revealed some requirements for investing in Bakkt’s new products. For both daily and monthly contracts, there is a hedge initial requirement of $3,900 and speculative initial requirement of $4,290.
The inter-month add-ons hedge rate for both products ranges between $400 and $1,000, and between $440 and $1,100 for the speculative rate. The company described that “The margin rate varies within the range by the expiration dates and the difference in expiration dates of contracts.” Each contract size is one Bitcoin (BTC).
Bakkt exchange and effects on Bitcoin
The new platform for Bitcoin futures trading will have a positive impact on the cryptocurrency industry. Speculations have been surrounding its launch as people believe that this new product will change the way institutional investors are involved in Bitcoin and other cryptos.
The case is different as, despite its launch, the BTC price is still trading below $10,000 as it tests the support levels of $9,600. No significant impact can be seen on Bitcoin after the launch as it still continues to trade close to the $10,000 levels.