Bakkt’s Bitcoin options and cash-settled futures contracts were officially gone live

Intercontinental Exchange’s Bakkt launched with Bitcoin options and cash-settled futures contracts, nearly three months after the launch of the physically settled Bitcoin futures product.

IE announced in a blog post on Monday that it used its physically settled Bitcoin contracts as a standard to support new products, both of which have been announced in recent weeks.

Bakkt Bitcoin

The blog post compared Intercontinental Exchange’s bitcoin ambitions with those of Brent Crude Oil futures. The company has launched a number of swaps, options, and futures contracts based on crude oil products and hopes to follow a similar book to develop Bitcoin-related products.

Bakkt’s options contract climbed just a month before CME, which has provided cash-settled bitcoin futures in the United States, launched its own similar product. However, CME depends on its bitcoin index while the price of Bakkt will be based on its existing physical product.

Later this month, Malta-based OKEx also announced on Monday that it will offer trading options.

The company said that Bakkt’s monthly option contract, there was no contact with the spot market.

The blog post also includes a registration link for individuals interested in being updated on the Bakkt consumer app, with the same link asking subscribers to determine if they are a consumer or a merchant.

Bakkt announced the app in October, saying it would help consumers pay for goods in Bitcoin. Starbucks will be the launch partner when the app launches sometime next year.

The new launch of Bakkt came several days after CEO Kelly Loeffler was elected by Georgia Governor Brian Kemp as Georgia’s next Senator. An ICE statement shared last Wednesday indicated that Loeffler would have to give up her current role before she took the oath on January 1.

Bakkt launches cash-settled futures contracts for Bitcoin

Three months ago, Bitcoin futures platform Bakkt announced plans to provide cash-settled Bitcoin futures contracts, as opposed to providing only a physically-focused product. The initial news was met with skepticism because cash-settled Bitcoin futures neither traded any Bitcoins nor held Bitcoin. However, with Bakkt CEO Kelly Loeffler as the recently appointed Senator for the US state of Georgia, many have returned to an optimistic outlook on Bakkt’s future.

Bakkt’s physically delivered Bitcoin futures contracts were offered in September 2019. This path has some delays after some legal barriers. Now that the company is in operation, they seek to bridge the gap between digital assets and institutional investors.

As part of their ongoing effort, they will launch two new services on December 9. They include Bitcoin (USD) Options and Bitcoin (USD) Cash Settled Monthly Futures. Bakkt is a product of the same company behind the New York Stock Exchange (NYSE): Intercontinental Exchange (ICE).

Launching Bitcoin futures contracts in cash in Singapore

Cash futures, offered through ICE Futures Singapore, seem to target potential demand in the Asian market, although any ICE customer can trade the contract.

Bitcoin futures paid in cash Bakkt are now available at ICE Futures Singapore. The new product seems to have had a good day, with over 1,000 of the contracts changing hands.

It seems that such revelations have turned the cryptocurrency industry out of the Bakkt platform. Bakkt confirms that trading futures contracts in Singapore have opened up with more interest than at the official Bakkt launch in September.

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