Trading is as of now gone live for Bakkt’s regulated physically delivered, daily and monthly bitcoin futures. The initial trade was executed at 8.02 p.m. E.T. yesterday. Bakkt is a much-acclaimed digital asset platform that is enabled and facilitated by intercontinental exchange, ICE, which is the parent company of the famous New York exchange.
It began offering the service of physically delivered bitcoin futures on Sunday. The Bakkt bitcoin USD daily futures contract also the Bakkt bitcoin USD monthly futures contract are currently trading on ICE futures U.S., which happens to be among the world’s biggest commodities market. It is cleared by ICE Clear U.S. It should be noted that the two platforms are accessible to all qualified market participants located in the United States and internationally.
Following its launch, Bakkt tweeted, “we are alive. The first back to bitcoin futures trade was executed at 8.02 p.m. E.T., at a price of USD 10115. Traders and investors now have a market that will offer them physically delivered bitcoin futures, which translates to the fact that actual bitcoins are stored in Bakkt’s warehouse and are subject to delivery upon expiry of the contract.
The launch of Bakkt bitcoin futures comes ahead of a couple of other CFTC regulated exchanges which include Ledgerx and TD Ameritrade-backed Erisx. Also available on the Chicago mercantile exchange are CME cash-settled bitcoin futures. CME made a move recently to announce that it had plans underway to pilot options on bitcoin futures contracts that stretch to the first quarter of next year due to regulatory reviews that are ongoing.
ICE futures U.S. recently announced some essential checklist in order for one to invest in their new products. For the two, daily and monthly contracts, one will require an initial hedge requirement of USD 3900 and an initial speculative element of USD 4290. On the other hand, the inter-month add-ons hedge rate that will cut across product falls between USD 400 and USD 1000 also between USD 440 and USD 1100 for the speculative price.
“The margin rate varies within the range by the expiration dates and the difference in expiration dates of contracts,” the company moved to make a description of its products. It is notable that for each contract size, the equivalent is one bitcoin Core, BTC. The client’s bitcoins are safely kept in the Bakkt warehouse that is operated by Bank Trust Company LLC. It is an eligible guardian that is governed by the New York State Department of financial services, DFS. “The Bakkt warehouse is comprised of both online and offline, air-gapped digital assets storage,” the company highlighted in its description.