Atlanta-based Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), has announced that it is going to list cryptocurrency trading platform Bakkt Bitcoin (USD) Daily Futures Contract for trading on December 12.
Bakkt’s infrastructure is designed on ‘the time-tested, regulated futures markets’ to offer trading and hedging opportunities. It is an open-source, neutral platform to enable clients to buy, sell, store and spend digital assets simply, safely, and efficiently.
The official notice stated,
“The Bakkt Bitcoin (USD), Daily Futures Contract, is a physically-settled daily futures contract for bitcoin held in Bakkt LLC, ICE’s Digital Asset Warehouse, and will be cleared by ICE Clear US, Inc.… Each futures contract calls for delivery of one bitcoin held in the Bakkt Digital Asset Warehouse and will trade in U.S. dollar terms. One daily contract will be listed for trading each Exchange Business Day.”
Bakkt’s first contracts will be physically delivered Bitcoin (BTC) futures contracts versus fiat currencies, including USD, GBP, and EUR. Buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into a customer’s account.
Jeffrey C. Sprecher, the founder, chairman, and CEO of ICE explained,
“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets.”
However, Bakkt will not support margin trading for its BTC contract. This prohibition of margin, leverage, and cash settlement will help support market integrity and stability.
The primary objective of Bakkt is to serve institutions with an effective infrastructure for digital assets. Bakkt’s open-source, neutral platform aims to meet applicable regulatory requirements and support innovation around digital assets and blockchain applications.
Kelly Loeffler, CEO of Bakkt stated,
“Bakkt will provide the first Federally regulated, physical delivery price discovery contract for the digital currency market.”
According to Loeffler, “We’re taking a transparent approach to engage across the industry as we begin testing and onboarding in November, and trading and warehousing in December.”
Based on ICE’s proven financial market infrastructure and technology, Bakkt hopes to connect investors, merchants, and consumers and facilitate easy, quick and cost-effective means to access, trade and use digital assets.
Some of the prominent investors in Bakkt’s platform include Mike Novogratz‘s Galaxy Digital, Pantera Capital, and others.