Bakkt confirms the first contacts to be physically delivered Bitcoin futures contracts against fiat currencies like USD, GBP, and EUR. With the focus on regulated institutions, Bakkt has the crypto community excited.
Physically delivered Bitcoin futures contract: Bakkt
Bakkt is less than two months away from launching its platform and it is leaving no stone unturned to ensure this step is seamless and progressive one at that. According to the latest developments, Bakkt has announced that the first of its contracts will be physically delivered ones as stated:
“Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP, and EUR. For example, buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.”
Just to reiterate,
Bakkt is designed to serve as a scalable on-ramp for institutional, merchant, and consumer participation in digital assets by promoting greater efficiency, security, and utility
— Bakkt (@Bakkt) August 30, 2018
Bakkt has previously stated that physical bitcoin futures would be involved:
“Bakkt uses the existing, time-tested, regulated futures market infrastructure to introduce physically delivered Bitcoin and warehousing to global markets.
All aspects of the existing futures market will, for the first time, be part of physical delivery and warehousing of Bitcoin.”
This came onto the heels of Bakkt’s previous statement that they won’t be offering any marginal trading or allow any leverage with regards to Bitcoin. Moreover, the focus here by Nasdaq’s parent company Intercontinental Exchange (ICE) is on regulated institutions as shared by Bakkt on twitter a few days back,
“While there are many aspects of Bakkt that we’ll continue to develop and share, our initial focus is supporting regulated institutions in serving customers in this emerging asset class.”
Bakkt has only emphasized this point time and again as it has shared:
Bakkt is working to address the unique requirements of regulated institutions, their clients and stakeholders, such as merchants and consumers. Our goal is to make digital assets more liquid, trusted and accessible; allowing meaningful innovation to follow.
— Bakkt (@Bakkt) September 19, 2018
Excited community, bullish on Bitcoin & crypto market
For the time being, crypto and bitcoin enthusiasts are excited and anticipating Bitcoin ETF approval by SEC which will not involve any physical bitcoins like Bakkt’s futures contracts.
People and market are getting extremely excited on the prospect of new money coming into the market as one Redditor shared,
“If you’re a holder, you would be a fool to sell at any point over the next 3-5 years. No way in hell I am selling in that time period. Lots of new money is coming in.”
Another Redditor shared,
“Let the market digest this one. Things are still moving as planned.”
Moreover, a giant from the mainstream financial market involved in the crypto market is a step in the right direction apparently as this Redditor shared in part,
“This is a good way to get physical bitcoin pretty quickly (1-day) while falling into a well known regulatory regime. Future contracts are regulated by the CFTC and have clear rules. Also, BAKKT is owned by ICE and they have tons of futures trading already so it’s something they’re skilled in. And finally, institutions trust ICE and the CFTC.”
With scheduled to release in November, the entire crypto market is looking forward to this launch and its impact on Bitcoin and crypto market.
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Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.