Bakkt Bitcoin Futures Trading Is Live on Major Exchange


The long wait for the Bakkt Bitcoin Futures is over. Physically delivered Bakkt Bitcoin Futures Trading is live on the ICE backed Bakkt Exchange. Moreover, the platform was one of the trending topics for the crypto community from the past few months.

The article was updated on 20 January, 2020 by Amicus.

23 September, 2019 | AtoZ MarketsTrading is now live for Bakkt’s regulated, physically-delivered daily and monthly bitcoin futures. The first trade executed at 8:02 pm ET on Sunday at $10,115. Institutional traders now have a market for physically-delivered bitcoin futures. Actual bitcoins are held in Bakkt’s warehouse and will be delivered at the expiry of the contract.

First Bakkt Bitcoin Futures Traded at $10,115

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 on 26th August. Bakkt secured the approval from the US Commodity Futures Trading Commission (CFTC) at that time.

Bakkt is the first in the business to offer physically-settled Bitcoin futures. However, the Chicago Mercantile Exchange and the Chicago Board Options Exchange (CBOE) offer Bitcoin futures as well. The customer gets real Bitcoins once the equivalent amount of cash gives at the end of the contract.

Read More: What is Bakkt warehouse Bitcoin deposit insurance?

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 an initial hedge requirement of $3,900 and the initial speculative 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. People believe that this new product will change the way institutional investors involved in Bitcoin and other cryptos.

The case is different as, despite its launch, the BTC price is still trading below $10,000. It tests the support levels of $9,600. However, no significant impact viewed on Bitcoin after the launch. It also continues to trade close to the $10,000 levels.

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