Bakkt Reveals July Date For Bitcoin Futures Testing
The yet-to-launch institutional-focused crypto platform Bakkt has announced that it will begin testing the first of its futures products on July 22.
In a blog post announcement released on Thursday, June 13, the Intercontinental Ice Exchange (ICE)-owned platform said that its plan is to “initiate user acceptance testing” for the platform’s Bitcoin (BTC) futures contracts.
The firm’s chief operating officer (COO) Adam White referenced the 1969 moon landing of Apollo to perhaps highlight the many delays that have hit the platform’s launch since its initial unveiling in August 2018.
The multiple delays have been occasioned by the need to have a regulatory compliant platform that will cater to the needs of institutional investors.
White added that the move was by no means a “small step,” as the launch of the products will set a new standard in how institutional investors access crypto markets.
He noted that institutional participation within the crypto space is still not as it should be, with players constrained by both inadequate “market infrastructure and regulatory certainty.”
Bakkt’s bitcoin futures will be listed and traded at its parent company ICE Futures U.S., with clearing at ICE Clear US. Also provided in the announcement are details on the monthly contract and an update on the specifications of the daily contract.
The minimum price fluctuations for both the monthly and daily contracts will be $2.50 per bitcoin. As for trades, execution may be $0.01/BTC and will have the listing cycle run up to 12 months or 70 contracts dates for the monthly and daily products respectively.
ICE’s announcement has come at a time when data is showing that BTC futures at the CME Group had seen record volumes over last month. But it is also coming on the back of CBOE’s decision to pause its contracts offering, saying it would not offer new ones after the final contracts settle at the end of June.
Unlike the cash-settled contracts on the CME and CBOE, Bakkt bitcoin futures contracts will be physically-settled, with clients receiving actual bitcoins and not fiat equivalents.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.