November 27, 2022

Bakkt Launches Options and Settlement Futures for Bitcoin (BTC)

Bakkt Launches Options and Settlement Futures for Bitcoin (BTC)

Bakkt cryptocurrency platform announced Monday the launch of two new products tied to Delivered bitcoin futures presented in September: options and futures contracts, which are settled in traditional currency.

The company notes on its blog that it usesDeliverable bitcoin futures as a price benchmark for other derivatives products, and mentions the example of Brent crude oil futures, which formed the basis for all kinds of swaps, options and other futures contracts.

“By launching supplying bitcoin futures withwith monthly payments for Bakkt, we created a benchmark contract, with the help of it laying the foundations on which we can develop additional products in accordance with the needs of our customers ”- the company writes.

Bakkt launches its options a month before the releasea similar product on the Chicago Mercantile Exchange (CME). Also this Monday, OKEx cryptocurrency exchange announced the upcoming entry into the space of option trading.

Bakkt options will not be tied to the unregulated spot market for bictoin, but only to futures supervised by US federal regulators, the publication said.

Non-deliverable futures were launched at the siteICE Futures Singapore, primarily to serve the needs of Asian investors. However, they can be traded by any Intercontinental Exchange client who owns Bakkt and the New York Stock Exchange.

Using Deliverable Futures in SettlementWith non-deliverable contracts, Bakkt's offer differs from similar CME biktoin futures, which were launched at the end of 2017. CME, unlike Bakkt, relies on an index formed on the basis of spot cryptocurrency exchanges.

The company admits the possibility of furtherdevelopment of the product line tied to the main futures contract. She recalls that she continues to develop customer services. The launch of the consumer payment application in collaboration with Starbucks, as well as the expansion of the custodial offer within the framework of the existing roadmap, should take place next year.

Recent trade volumes at Bakkthigh relatively disappointing results in the first weeks of launch. Recently, the platform set a record for the turnover of its bitcoin contracts with monthly payments above $ 42 million.