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Bakkt Goes Live With First US-based Regulated Bitcoin Options And Cash-settled Futures

By Emily Rys | December 10, 2019

Bakkt – the Intercontinental Exchange (ICE)’s crypto custody and futures trading service provider – has reportedly gone live with its US-based regulated Bitcoin (BTC) options and cash-settled futures. 

Revealed on December 9, Bakkt has decided to set a benchmark for designing complementary projects, via employing its physically settled Bitcoin contracts. 

“By starting with the physically delivered Bakkt Bitcoin (USD) Monthly Futures, we have a benchmark contract that provides the foundation for us to develop complementary products based on the needs of our customers.” Adam White, current COO of Bakkt, disclosed further details via a blog post. 

The 2 freshly rolled out projects include Bakkt Bitcoin (USD) Monthly Options and Bakkt Bitcoin (USD) Cash-Settled Futures.

Per White’s post, “Bakkt Bitcoin (USD) Monthly Options” is the first regulated Bitcoin futures contract, with the US Commodity Futures Trading Commission in charge of providing regulation for it. Price discovery takes place in a federally regulated market, “and has no exposure to unregulated Bitcoin spot markets”, the post reads. 

The other project, the Bakkt Bitcoin (USD) Cash-Settled Futures, works as a new contract, which can be widely used on ICE Futures Singapore in the first phase. The contract was developed upon the foundation of the benchmark Bakkt Bitcoin monthly future contract settlement price, which comes with an additional option support any client that cannot conduct trading activities using Bakkt’s physically delivered contract. 

The development was introduced following the previous appointment of Bakkt CEO – Kelly Loeffler – to be one of the US Senators.

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