Bakkt finally launches Bitcoin futures contracts
Bakkt has finally launched its long-awaited Bitcoin futures contracts platform. The kickoff took place on September 23rd 2019, and the first futures trade was executed at 8:02 p.m. ET at a price of USD 10,115.
Bakkt had initially planned to launch the futures' platform in 2018 but had to delay due to regulatory issues. The company is a subsidiary of the Intercontinental Exchange (ICE), which is the owner of the New York Stock Exchange (NYSE).
In addition to ICE, Bakkt is also backed by a number of other companies including Boston Consulting Group, Starbucks, and Microsoft.
A lot of excitement in the air
Though there is a lot of excitement about the Bitcoin futures contracts, the markets are yet to respond to the news and there are no major trend movements. However, the news about Bakkt launching this futures platform and its preliminary testing which began back in July 2019 have been characterized as the major propeller of the rise Bitcoin prices in 2019.
The decision to launch a Bitcoin futures contracts platform will play a great part in enticing investors who have so far shied away from trading Bitcoin in a traditional cryptocurrency exchange platform.
By launching futures contracts payable in Bitcoin, Bakkt moves a step closer to achieving its goal of allowing people to use cryptocurrencies in their daily lives seamlessly over its network. The company also aims at creating a platform where major money managers can offer Bitcoin Pension Funds, Mutual funds and Exchange Traded Funds (ETFs).
To fast track its vision, Bakkt has partnered with a number of investments groups such as Fortress Investment Group, Susquehanna International Group, and Eagle Seven.
Physically delivered Bitcoin futures
Bakkt is offering physically delivered bitcoin futures, while CME Group seems to have asserted its dominance in the field of cash-settled Bitcoin futures especially after its archrival Cboe left the scene.
In general, Bakkt's futures platform is expected to gather momentum over the coming days since it is one of its kind and there was a lot of anticipation around it. The company has managed to beat rivals such as LedgerX and ErisX by launching its platform before them.
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