Expanding the list of options for crypto-traders
After a series of delays and disappointments due to regulatory concerns, Bakkt’s first-ever trading platform for Bitcoin futures products is finally out in the market. On September 22, at PM EST, trading went live via the Intercontinental Exchange.
As per the previous announcements, Bakkt’s newly-launched product is the first-ever BTC futures trading platform to gain approval from US regulators. It is also pitched as a flagship product of Intercontinental Exchange, the notable operator behind the New York Stock Exchange.
Notably, Bakkt announced the initiative behind the project’s development last year. However, the date of the launch had been moved several times due to undisclosed reasons. However, industry analysts assume that the multiple delays sprang out from regulatory concerns.
On August 16, Bakkt’s press release confirmed that the company obtained regulatory approval from the United States Commodity Futures Trading Commission. Further, Bakkt confirmed the September 22 launch.
A massive achievement for the crypto industry
There are already existing Bitcoin futures products facilitated by the Chicago Board Options Exchange and Chicago Mercantile Exchange. However, unlike their offerings which are settled through cash, Bakkt’s new products enable clients to get actual Bitcoin rather than the crypto’s equivalent value in fiat once the contract reached maturity.
Furthermore, Bakkt’s BTC futures trading platform offers clients with two options, the daily trading and monthly trading of Bitcoin futures. Notably, Bakkt’s Warehouse had opened its doors to clients who want to deposit funds earlier in September as a preparation for the roll-out. A few days later, Bakkt announced that the deposits are protected by an insurance policy worth $125 million.
Since Bakkt’s initial announcement of the product, the crypto industry had been all eyes to the development. As analysts noted, physically delivered BTC futures products represent a significant leap for the industry as it has the potential to propel institutional acceptance for Bitcoin and other cryptocurrencies. According to Tom Lee, a notable crypto analyst, Bakkt can boost institutional trust for digital assets.