Bakkt Launches Bitcoin Options in US, Futures in Asia
December 10, 2019
Bakkt has launched two new regulated bitcoin derivatives products. Within hours of launch, Bakkt announced that over 1,000 futures contracts had been traded in Asia. The platform now offers four types of regulated bitcoin derivatives products: monthly and daily physically delivered bitcoin futures, cash settled bitcoin futures, and options on monthly bitcoin futures.
Bakkt, a digital asset platform powered by Intercontinental Exchange Inc. (ICE), the parent company of the New York Stock Exchange (NYSE), announced Monday that its two new bitcoin derivatives products are now live. They leverage the platform’s benchmark contract, the physically delivered bitcoin monthly futures, which was launched in September.
The first of the two new products is Bakkt Bitcoin (USD) Monthly Options, which settles into the underlying futures contract two days prior to expiry on ICE Futures U.S. The second is Bakkt Bitcoin (USD) Cash Settled Futures, which is available on ICE Futures Singapore. “We’re live with two new bitcoin contracts — a cash settled future and options on futures — both fully regulated and leveraging our benchmark,” COO Adam White remarked Monday. After about five hours following its launch announcement, Bakkt tweeted:
Over 1,000 Bakkt Bitcoin (USD) Cash Settled Futures contracts have been traded on ICE Futures Singapore since launching earlier today.
ICE unveiled its plans to launch the cash-settled futures in Singapore on Nov. 21. The contracts are listed on ICE Futures Singapore and cleared by ICE Clear Singapore, both of which are regulated by the Monetary Authority of Singapore (MAS). “Our new cash settled futures contract will offer investors in Asia and around the world a convenient, capital efficient way to gain or hedge exposure in bitcoin markets,” commented Lucas Schmeddes, President and COO of both ICE Futures and Clear Singapore.
Rising Interest and Growing Volumes
The two newly launched products join the platform’s two existing offerings: the Bitcoin (USD) Monthly Futures and the Bitcoin (USD) Daily Futures. Both are supposed to be physically settled, with the underlying bitcoins held in the Bakkt Warehouse. Bakkt Trust Company Llc is licensed by the New York State Department of Financial Services (DFS) to provide custody of bitcoin. The “DFS has authorized Bakkt to provide custody services for bitcoin in conjunction with the launch of physically delivered bitcoin futures contracts,” the regulator said on Aug. 16. The trust company is also registered with the U.S. Financial Crimes Enforcement Network (Fincen).
Despite a slow start in September, Bakkt’s futures trading volume soon picked up as BTC’s price plummeted. On Nov. 27, the platform boasted that a record high was set, tweeting:
Two months after their debut, Bakkt Bitcoin Futures reached a record high of 4,443 contracts traded today – up over 60% from our last record-setting day.
Meanwhile, Georgia Governor Brian Kemp has picked Bakkt CEO Kelly Loeffler to replace Senator Johnny Isakson who is retiring at the end of the month. Loeffler is expected to take office on Jan. 1.
What do you think of Bakkt’s two new bitcoin derivatives products? Let us know in the comments section below.
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Images courtesy of Shutterstock, ICE, and Bakkt Volume Bot on Twitter.
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