ICE’s Bakkt Officially Reveals First Crypto Product: Bitcoin (BTC) Futures Contracts
Bakkt Reveals First Crypto Product: Bitcoin Futures
A tweet made on Tuesday, September 25, revealed that Bakkt’s first contracts will be that of Bitcoin futures, which will be backed against fiat currency. Three options for fiat currencies have also been listed, which include USD, GBP and EUR.
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.
— Bakkt (@Bakkt) September 25, 2018
The tweet, which can be found right above, also gives an example that way investors have a clear idea as to what they are getting themselves into and what they can expect in terms of return on a daily basis. To fully appreciate the news at hand, it is important to have some background on what Bakkt is all about.
Bakkt was created with the intentions of enabling both individual and institutional investors to buy, sell, store and spend cryptocurrencies in an instant, trustworthy, efficient and commercial manner. The platform houses several features that supposedly makes it easier for users to do everything – i.e. trading, warehousing and commerce – under one roof.
Most importantly, the entirety of Bakkt is backed by the Intercontinental Exchange’s (ICE) financial market infrastructure and technology. ICE is widely known for owning the New York Stock Exchange and other global marketplaces, making them both reliable and valid. The concept behind Bakkt was first revealed back in August 2018, with its official launch set in November 2018.
In a previous press release, the CEO of Bakkt and ICE’s Digital Assets Lead, Kelly Loeffler shared that the designed platform will:
“serve as a scalable on-ramp for institutional, merchant and consumer participation in digital assets by promoting greater efficiency, security and utility.”
Since the announcement, the team managed to secure several partnerships within the technology, retailers and consulting services sectors (i.e. Microsoft, Boston Consulting Group and Starbucks) to ensure that their goals are being met. With such great news for Bitcoin (BTC) holders, one would assume that investors’ attentions will be revolving around Physically Delivered Bitcoin futures, but this does not seem to be the case.
One particular Twitter user, @BrokerCrypto, hit the nail on this one by stating the following:
Agreed, the best part about this is everyone is overlooking it cause they want a ETF and they’ll end up selling before November into our bids. Since this news dropped I haven’t had any fear or panic, I’m certain November will be the start of a bull run. Until than we shake out.
— CryptoBroken (@cryptobroken) September 25, 2018
Do you think that we will finally see a Bitcoin bull run? Will we relive December 2017 this time around? Let us know in the comments below!