In an official notice ICE, the parent company of the New York Stock Exchange, says that daily bitcoin futures contracts will be available for trading on December 12 on the ICE-operated Bakkt platform announced earlier this year
In an August’s post CEO of Bakkt Kelly Loeffler mentioned that the bitcoin futures will be physically settled and backed by actual bitcoins, which according to her promotes market integrity. ICE is currently cooperating with the Commodity Futures Trading Commission to work out regulatory aspects.
Intercontinental Exchange (ICE) operates 12 regulated exchanges including the New York Stock Exchange, the world’s largest stock exchange. This August ICE announced a plan to launch the first large-scale ecosystem for digital assets called Bakkt, or the Bakkt Digital Asset Warehouse. The startup was developed by ICE in cooperation with large companies like Starbucks and Microsoft. Many crypto-enthusiasts hope that Bakkt will serve as a pipeline that will allow the inflow of institutional capital into cryptocurrencies, which is believed to be the make-or-break factor for the industry.
A few weeks following the announcement, Kelly Loeffler, the CEO of Bakkt, published a Medium post in which she shared some of the details about of the platform. The three core principles of Bakkt are:
- A consistent regulatory construct;
- Transparent, efficient price discovery;
- An institutional quality pre- and post-trade infrastructure.
Bakkt’s Bitcoin Futures
The CEO emphasizes that Bakkt’s bitcoin futures contracts will be fully pre-funded and physically delivered (an actual bitcoin transaction must take place to settle the contract) and will not be traded on margin, use leverage or in any way create a paper claim on a real bitcoin token, which promotes the overall market integrity and supports the community’s general sentiment, ‘Not your keys, not your bitcoins’.
This month Loeffler made another post in which she announced that Adam White will be joining the Bakkt team as the Chief Operating Officer. Adam White is a former employee of Coinbase, the largest digital currency exchange in the U.S.