After a lot of speculations, the Bitcoin futures presented by Bakkts has gone live for trading on the Intercontinental Exchange, after Bakkt received a trust license.
Expansion in Trading
At 20:00 hours, on September 22, the Bakkt’s Bitcoin futures have been launched. It is honored to be the first platform that has received the consent of US regulators and also it will trade on ICE as its own product. ICE is also operating for the New York Stock Exchange.
However, the BTC futures platform was planned to be launched quite before its actual release date but got delayed. The subjected factor could be regulatory policies that took 13 months to approve and launch this platform.
After facing the regulatory concerns, on 16th August, Bakkt’s officially announced that the US CFTC has given a secured approval to the company for the release of the platform. Also, the CFTC has planned 23rd September to be the first day of trading.
This is something extremely exciting about investors and Forex traders.
Two of the trading exchanges of Chicago namely, (CBOE), and (CME) have already given their consent for Bitcoin futures trading. These trades are going to be cash-settled. As per Bakkt’s Bitcoin futures contract, the clients will be getting Bitcoin after the expiration of the contract.
The traders will be able to do trading on a monthly and daily basis, expanding the number of tools they use for trading like crypto systems, and the Bitcoin futures will be processed through the warehouse of Bakkt’s Bitcoin. This warehouse has already begun the deposits and withdrawals at the beginning of the month. For the protection of Bitcoin placed in the warehouse, Bakkt’s has already taken secured insurance worth $125 million.
Attraction to the Crypto World
The crypto world has made a lot of speculations and opinions on the Bakkt’s Bitcoin futures platform. Most of the analysts say the physical delivery of such coins may shift the preferences of investors from crypto to Bitcoin. However, some of them are giving a supportive hand stating it is for good of crypto institutions.
Reaction from the World
According to the global perspective, Bitcoin futures contracts may not likely impact the crypto market in recent times. And this would happen as the company is not including retail traders. However, it possibly can slow down the trading volumes of other crypto coins, though cash settling options would revive the trade in a longer prospect.