Intercontinental Exchange [ICE], the owner of thethe New Yorkstock market[NYSE],canlist its highly-anticipated bitcoinfuturescontract in just less than2months, i.e.. on 12th Dec.
Familiar as a physically-settled dailyfutures, the contractsarebacked by actual bitcoinsheldwithin ICE’s DigitalAssetWarehouse. In line with a press release,everyfuture contracts would be validatedthrough ICE Clear U.S., the firm’s clearing venue.
Adding further, the press release stated:
“Eachfuture contractneedsdeliveryof 1bitcoinheldwithin theBakkt DigitalAssetWarehouseand would tradeUSD and others. One daily contractwould belisted fortradingeachExchange Business Day.”
Launchedinpartnership between ICE — the operator oftwenty threeleadinginternationalstock market,together withtheNew York Stock Exchange [NYSE]— andotherhouseholdnamestogether withStarbucks and Microsoft, the Bakkt venture aimsto makeanopen, compliantecosystemfor digital assets.
Bakkt was created to be a “regulated ecosystem”that givesprotection for institutional investorswho needto induceexposure to cryptocurrency. At the time of the announcement inSept, Bakkt hadsamethe physical bitcoin futures would belistedagainst the USD,pound sterling, and euro.
“Aimportantelementto pricediscovery is physical delivery. Specifically, with ouranswer, thecommerceof bitcoin isabsolutelycollateralized or pre-funded. As such, our new daily bitcoin contractwon’tbetradedon margin, use leverage, or serveto makea paper claim ona trueasset,” Bakkt aforementioned at the time, responding to criticisms that the contractsmightmask “hidden leverage.”
For every one purchase of a USD/BTCpair futures,there’llbe a deliveryof 1bitcoin into the owner’s account at settlement. That contrasts with the bitcoin futures markets on CBOE and CME,thatarecash-settled,which meansthat no actual cryptocurrency assets exchange hands at expiration.
Investors in Bakkt’s platformembodyMikeNovogratz‘s Galaxy Digital, Pantera Capital, and several others.