CEO of ICE Comments on the High Institutional Interest for Bakkt’s Bitcoin Derivatives on the Rise

On Thursday, October 31, 2019, the CEO of Intercontinental Exchange (ICE), Jeffrey Sprecher shared that Bakkt has attracted the attention of many institutional players reports The Block.

When questions regarding ICE’s third-quarter earnings came up, that’s when talks targeting Bakkt came into play. This then led to questioning the reason behind Bakkt’s rather fast pace move into bitcoin options – to which Sprecher simply noted that there is a continuous spike in institutional interest in bitcoin derivatives.

As per his quotes:

“All [kinds] of financial institutions are talking to us and looking at this and trying to figure out where these fit and what the global regulators are going to think about this and so on and so forth.”

When looking closely at Bakkt’s daily traded volume of futures (in million USD), the numbers have been between $0.23 and $1.93 million for a little under a month (Sept 23 and Oct 22). Things seem to have picked up as of October 23 ($4.81), with the trading volume reaching $10.25 million just 6 days ago.

Sprecher trusts that Bakkt’s moves into the options market reflect ‘price discovery,’ reports the news outlet. In addition, the CEO described that their ability to determine the proper price of said commodity increases the overall transparency of the space.

In particular, he emphasized:

“We develop our own settlement price and so that lends itself very nicely to an options market where people that trade options and hedge […] ca have perfect hedging in one venue that they know is transparent – So that was the pressure to get the options out quickly.”

As for what plans Bakkt has for the consumer payments space, Sprecher disclosed that it rested solely in the belief that Bitcoin will not only be used for payment purposes but has the potential to have some store of value.

He said:

“We don’t think that, that whole space will be relevant and grow unless there are real use cases. And we do, as you pointed out, think that a use case is going to be digital transfer of value through payments.”

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide