Bakkt starts Testing its Bitcoin Futures Platform

Bakkt recently announced the start of testing Bitcoin futures.

Found in 2018, Bakkt is a company launched by Intercontinental Exchange (ICE), creator of the New York Stock Exchange (NYSE). Digital assets platform Bakkt already raised $182.5 million from 12 partners and investors in the first round of funding.

Executive Opinion

In a blogpost, Bakkt Chief Operating Officer, Adam White, said, "This is no small step. This launch will usher in a new standard for accessing crypto markets. Compared to other markets, institutional participation in crypto remains constrained due to limitations like market infrastructure and regulatory certainty. This results in lower trading volumes, liquidity, and price transparency than more established markets like ICE’s Brent Crude futures contract, which has earned global trust in setting the world’s price of crude oil."

More of Bakkt's Bitcoin Futures Tests

Bitcoin Futures will be traded at ICE Futures U.S. and cleared at ICE Clear US. It will be the first physically delivered Bakkt Bitcoin (USD) Futures Contract for bitcoin held in Bakkt Warehouse. The announcement noted the support for the ICE Futures U.S. launch of daily and monthly margined futures for bitcoin by bringing regulated custody as part of the futures contract.

Each futures contract calls for delivery of one bitcoin held in Bakkt Warehouse. It will trade in U.S. dollar terms. For the trading purpose, there will be only one daily contract listed for each Business Day.

The announcement further noted Bakkt's support for lock trades, a fee holiday through the end of the year to encourage trading, market maker incentive programs to encourage liquid markets, and integrations with ISVs and regulated brokerage platforms.