Intercontinental Exchange’s Bakkt launches its Bitcoin options and cash-settled futures exchange products. It is just three months after the launch of its long-awaited and physically-settled bitcoin futures product.
10 December, 2019 | AtoZ Markets – The sister company of the New York Stock Exchange announced in a blog published on Monday that it uses its physically-settled bitcoin contracts. It is a reference to support new products. That was both announced in recent weeks.
Bakkt Bitcoin Futures Exchange Products
The blog compares the bitcoin ambitions of Intercontinental Exchange with those of its Brent crude oil futures. The company has launched several swaps, options, and futures contracts based on the crude oil product. And it hopes to follow a “similar plan” to develop its bitcoin-related products.
“Starting with the physically delivered Bakkt Bitcoin (USD) Monthly Futures, it has a reference contract. That provides the foundation to develop complementary products based on the needs of its customers,” says the blog.
Bakkt’s physical futures contract started slowly after its launch in late September. But volumes have recently increased, with monthly futures product trading at more than $ 120 million in three months.
At press time, Bakkt has already managed to negotiate 634 BTC worth of its USD-settled contracts.
Bakkt’s options contract comes just one month before CME, which already offers cash-settled bitcoin futures in the US, is launching its similar product. However, if Bakkt’s prices will be its existing physical product, CME’s are dependent on its bitcoin index.
Bakkt, first day volumes: 71 bitcoin.— Alex Krüger (@krugermacro) September 24, 2019
CME, first day volumes: 5298 bitcoin.
That's a 75x difference.
ICE Futures Singapore is Targeting Potential Demand in Asian Markets
Maltese OKEx also announced on Monday that it would offer options trading later this month. However, Bakkt’s monthly options contract is not exposed to spot markets, the company said. The cash futures provided by ICE Futures Singapore appear to target potential demand in Asian markets. But any ICE customer can negotiate the contract.
The blog post also included a registration link for people interested in Bakkt’s consumer app. The link itself asking people to register whether they are a consumer or trader. Bakkt announced the application in October, saying it would help consumers pay for products using bitcoin. Next year, Starbucks will be a launch partner when the app is launched.
“At Bakkt, its mission is to bring trust and utility to digital assets,” says the blog. “These contracts also represent an important step in the development of this emerging asset class and our bitcoin product complex.”
Bakkt’s new launches come a few days after Kelly Loeffler named Georgian Senator by state governor Brian Kemp. A statement from the ICE last Wednesday said that Loeffler should resign from her current position before sworn in on Jan. 1.
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