Bakkt , The Intercontinental Exchange’s (ICE) digital asset platform has launched regulated Bitcoin (BTC) future options, just as their CEO Kelly Loeffler becomes a US Senator. These BTC options offered by Bakkts are the first cash-settled futures offered in the United States.
According to Bakkt’s announcement on December 9th, they are starting to use their physically settled Bitcoin contracts as a model for building complementary cryptocurrency products.
Bakkt’s monthly futures contract, a model for other new products
The futures contract news was announced in a blog post by Bakkt COO Adam White. There he stated:
“By starting with the physically delivered Bakkt Bitcoin (USD) Monthly Futures, we have a benchmark contract that provides the foundation for us to develop complementary products based on the needs of our customers.”
Bakkt are the first to offer regulated Bitcoin options
The two new products offered by the firm include: Bakkt Bitcoin (USD) Monthly Options and Bakkt Bitcoin (USD) Cash-Settled Futures.
According to the announcement, Bakkt’s product is the first regulated Bitcoin futures contract that is regulated by the United States Commodity Futures Trading Commission.
The futures product which is cash-settled is a new contract that will be initially available on ICE Futures Singapore. This is an approved exchange in Singapore. The options contract is based on the settlement price of the benchmark Bakkt Bitcoin monthly future contract. This will enable the option for participants who are unable to trade Bakkt’s physically delivered contract.
Bakkt CEO entering the US Senate
Bakkt CEO Kelly Loeffler has been appointed to a seat in the US Senate. According to reports, Loeffler will be replacing Sen. Johnny Isakson (R-GA). As Isakson plans to retire by the end of the year.
The Bakkt platform is one of the most promising cryptocurrency-related initiatives to appear recently. What is unique about their platform is that their contracts are physically settled. In recent months Bitcoin futures have been one of the most discussed products in crypto.
Despite the platform reporting low volumes during its September 23rd launch, Bakkt has continued to grow. Slowly but surely gaining momentum within the cryptocurrency markets. Bakkt continues to break its volume records, doing so again on December 3rd as futures contracts hit another record high of $6.5 million. In late November, they set another record for Bitcoin futures trading on Bakkt, which was approximately 5,600 BTC during 1 day.