Bakkt to Launch Options Contracts in Bitcoin Futures in December
Bakkt, which takes pride in being Intercontinental Exchange’s bitcoin derivatives provider, has unveiled the launch date of its highly anticipated options contract for its bitcoin futures. The platform has decided to present the first options contract for bitcoin futures as the latest product to its present products chain on December 9, 2019.
As per an interaction, CEO Kelly Loeffler stated that the new options contracts were created lying in alignment with the customer feedbacks. Also, ICE Futures US self-certified the product via the U.S Commodity Futures Trading Commission or CFTC.
Kelly Loeffler stated,
We’re committed to bringing trust and utility to digital assets, and the options contract is an example of the many products we’re developing for regulated markets.
She also added that,
The Bakkt Bitcoin Options contract will be based on the benchmark Bakkt Monthly Bitcoin Futures contract and represents another important step in developing this asset class for institutional investors, their customers, and investors.
With the launch of the options contracts, Bakkt will allow its customers to get a fair chance of buying or selling a particular futures contract at a pre-agreed price at the option’s closing date.
Interestingly, when Bakkt unveiled its first futures contracts a month ago this year, the platform had to face considerable low trading volume. However, with the passage of time, the trading platform has started strengthening its roots in the market space. On Wednesday, the platform achieved an all-time high of $4.81 million approximately. These figures were more than the combined trading volume of the past nine days.
Loeffler clarified that,
We’ve been working closely with market participants to build liquidity, create market transparency, and build open interest. Notably, we saw a record 590 contracts of Bakkt Bitcoin Monthly Futures change hands yesterday, October 23. We also completed a milestone with seamless physical deliveries in both our daily and monthly bitcoin futures contracts.
Bakkt is also gearing up to partner with Chicago-based crypto exchange, CME, for launching options contracts. The exchange is set to come up with the bitcoin options in the first quarter of 2020. As per the letter to the CFTC, Bakkt is launching a market maker solution that will magnify the trading volume of its monthly contracts.