Bakkt Cleared To Launch Physically-Settled Bitcoin Futures Contracts

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August 20, 2019 – Since the announcement that Bakkt Exchange is cleared to launch “physically-settled Bitcoin futures”, the price of Bitcoin seems to gain momentum as opposed to the previous weeks.

Bakkt has revealed that it has acquired a New York state trust charter, which allows it to begin physically-settled Bitcoin futures contracts. The product launch will be on September 23, 2019.

“Our contracts have already received the green light from the CFTC through the self-certification process and user acceptance testing has begun” – Bakkt CEO Kelly Loefler

With the approval, Bakkt will act as the custodian of Bitcoin, which, the company says, will “offer customers unprecedented regulatory clarity and security”. Bakkt will not be relying on spot markets for settlement prices, which, the company thinks, is a differentiator given that there have been reports of “manipulative spot market tradings”.

Other key details include:

  • Bakkt’s daily contract is margined.
  • There is leveraging but details won’t be announced yet.
  • For Bakkt’s monthly futures contract, there is a “forward pricing curve” for investors.

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Since this news August 16, 2019, Bitcoin’s price has increased from the low $9,755 on that day to $10,800 (Binance BTC/USDT) on August 19, 2019. As per Coindesk report:

    • Crypto analyst Scott Melker said Bakkt’s physically-delivered futures product will open the floodgates for institutional money.
    • Some observers, however, think this may not necessarily translate to stronger buyer pressure.
    • Financial analyst and tech journalist Joseph Young said Bakkt Launch was already priced into the market.
  • Finally, Coindesk said the market outlook will only turn bullish “if the prices print a weekly close of above $12,000

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This article is first published on BitPinas: Bakkt Cleared To Launch Physically-Settled Bitcoin Futures Contracts

Photo by Chris Liverani on Unsplash

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