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First BAKKT Physical Bitcoin Futures Now Revealed

Redwan Eid | Sep. 26, 2018
First BAKKT Physical Bitcoin Futures Now Revealed

Sep. 26, 2018 | AtoZ Markets - Intercontinental Exchange (ICE) announced yesterday, September 25, its Bakkt cryptocurrency platform’s first offering will take the form of physical Bitcoin futures.

According to ICE –which also operates the New York Stock Exchange NYSE- Bakkt will offer futures against at least three fiat currencies: The U.S. dollar, British sterling pound and euro.

The financial company mentioned earlier, that its Bakkt would be a “regulated ecosystem” for institutional investors aiming to get exposure to cryptocurrency,

“Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP and EUR,” the company wrote on Twitter.

The statement added: “For example, buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.”

The announcement builds on a previous confirmation in August that Bakkt would not offer margin trading or use leverage with Bitcoin, saying it did not want to “serve to create a paper claim on a real asset.”

With Bakkt’s November launch gaining more popularity, with few details known about its setup, well-known cryptocurrency figures forwarded criticism at the institutional investor rush, arguing non-custodial trading could ultimately hurt Bitcoin’s reputation.

The anticipated Bitcoin Exchange-Traded Funds (ETFs), are yet to be approved by U.S regulators.

The above mentioned marketable securities have been reported to be different from Bakkt’s offering, due to the fact that the traders of the former would not take delivery of any actual bitcoins.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.