- ICE is waitng for regulatory approval of its BTC futures.
- CFTC will decide by the end of January.
Intercontinental Exchange Inc (ICE), operator of the New York Stock Exchange is about to launch Bitcoin futures contracts with physical delivery of the underlying asset. The instrument is aimed at institutional players who want to get exposure at this market, though they are concerned with many risks related to the lack of regulation and vulnerability to manipulations.
CME and CBOE launched Bitcoin futures a year ago, but those instruments are settled in US dollars, while ICE’s offering takes crypto futures one step further and closer to institutional adoption.
Many large corporations including Microsoft Corp. and Starbucks Corp. support the effort as they bet on crypto in the longer-term perspective. Their primary aim is to make digital assets more transparent and accessible, allowing people to use it for everyday needs.
“Once digital assets have more trust and regulation, people will be more comfortable using digital assets as currency,” Kelly Loeffler, chief executive of the ICE cryptocurrency business commented.
ICE has been working with regulators at the Commodity Futures Trading Commission to ensure compliance with regulatory requirements. Since CFTC deals with contracts settled in cash, securities, and agricultural commodities, the project offered by ICE will require an exemption.
CFTC commissioners will vote on the proposal early in 2019, and then the public will have 30 days to weigh in.
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