Breaking: Bakkt to Roll Out First-ever Bitcoin-focused Regulated Options Contract

By Tracy Hannes | October 25, 2019

Bakkt has publicly revealed its plan for rolling out first-ever Bitcoin (BTC) futures-focused regulated options contract in December this year. 

According to the Bitcoin futures exchange firm, the primary update that comes with Bakkt Bitcoin Options contract are capital efficiency, cash or physical settlement with reduced process fees. 

The new contract also allows for instant messaging, block trades, options analytics and EU-style option – an option contract which lower the chances of early execution to happen, consequently beneficial, operation-wise, as claimed by Bakkt

The new option contract was built upon the feedbacks gathered from Bakkt clients, as noted by CEO Kelly Loeffler, and was particularly built as a tool to limit or increase the exposure of Bitcoin. 

“ICE Futures U.S. has self-certified the contract with the CFTC and we’re excited to leverage the benchmark futures prices and institutional-grade custody to meet the needs for a regulated options contract.” Bakkt further claimed. 

Loeffler further disclosed that the new option contract was developed using the foundation of Bakkt Monthly Bitcoin Futures contract – a Bitcoin futures contract introduced together with Bakkt Daily Bitcoin Futures on September 22. 

Particularly, $1.25 will be the standard fee for every option contract, beginning January next year, after the fee waiver timeframe in the upcoming December ends. 

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