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Physically settled Bitcoin futures to go live on ICE’s Bakkt platform on December 12

  • ICE published a press-release with a proposed date of Bakkt platform launch.
  • The futures will be traded in dollar terms with settlement agains USD, EUR, and GBP.

The Intercontinental Exchange, a parent company of the New York Stock Exchange revealed that it would launche Bitcoin Futures on Bakkt platform on December 12, according to the official press release published on Monday.

Bakkt will offer physically settled bitcoin futures contracts and hold Bitcoins to back the futures in the ICE Digital Asset Warehouse. The contracts will be cleared through anouther ICE subsidary, ICE Clear US.  

“Each futures contract calls for delivery of one bitcoin held in the Bakkt Digital Asset Warehouse and will trade in U.S. dollar terms. One daily contract will be listed for trading each Exchange Business Day,” the press releas goes.

The minimum price movement will be set at $2.5, while  Block Trades may be executed at $0.01 per Bitcoin.

Why is it important?

Bakkt is supposed to provide a regulated ecosystem for institutional players that want to get exposure to digital assets and stay compliant with the regulatory requirements. Moreover, the unlike the rival platforms, Bakkt will offer deliverable futures against three major fiat currencies (Euro, USD, GBP). CBOE and CME have only non-deliverable futures for Bitcoins.

Read more about Bitcoin Futures trading here
 

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