BAKKT Bitcoin Options on Futures will launch in December


The Intercontinental Exchange (ICE)  will launch bitcoin options contracts in December through its subsidiary Bakkt.

October 24, 2019, | AtoZ Markets – Bitcoin derivatives provider Bakkt has announced the launch date of an options contract for its Bitcoin futures.

Bakkt Bitcoin options contract is certified with CFTC

Acording to the announcement, the firm will launch the first regulated options contract for Bitcoin futures on December 9. Options on futures contracts give the purchaser the right to buy or sell a specific futures contract at a predetermined price at the option’s expiration date.

In addition to its options contracts, Bakkt is launching a market maker program to boost trading of its monthly contract, according to a letter addressed to the U.S. Commodity Futures Trading Commission (CFTC).

“ICE Futures U.S. has self-certified the contract with the CFTC and we’re excited to leverage the benchmark futures prices and institutional-grade custody to meet the needs for a regulated options contract” says Bakkt.

According to Bakkt CEO Kelly Loeffler, the new contract product is based “on customer feedback and is designed to hedge or gain bitcoin exposure, generate income, and offer cost and capital efficiencies.

Bakkt Bitcoin Options contract “represents another important step in developing this asset class for institutional investors, their customers and investors,” adds Loeffler.

In early October, ICE, the governing body behind the New York Stock Exchange, executed the first block trade of Bakkt Bitcoin futures contracts. On Wednesday, Bakkt futures volumes hit an all-time-high of ~$4.81 million—the figure is more than the total volume over the nine previous trading days combined.

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