Finally landed! Bakkt physical settlement bitcoin futures trading platform officially launched

According to Cointelegraph's September 23 report, Bakkt's physical settlement of bitcoin futures products has been officially launched on the Intercontinental Exchange (ICE).


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Trader's new choice

As of 8:00 pm EST on September 22 (UTC time September 23, 00:00), Bakkt's much anticipated bitcoin futures trading has officially launched. The platform is a product of the New York Stock Exchange operator ICE and is the first platform to receive such transactions approved by US regulators.

Although the news that Bakkt plans to launch physical settlement of bitcoin futures transactions has been released more than a year ago, due to regulatory concerns, the platform itself has experienced several delays. On August 16 this year, Bakkt announced that the company has obtained approval from the US Commodity Futures Trading Commission (CFTC) and is scheduled to launch its first physical delivery bitcoin futures contract on September 23.

What's new?

While the Chicago Mercantile Exchange and the Chicago Board Options Exchange are currently offering bitcoin futures trading, these transactions are settled in cash. Bakkt's physical settlement futures contract allows customers to obtain bitcoin after the contract expires, rather than the legal currency of the equivalent.

The platform provides physical settlement of daily and monthly Bitcoin futures contract transactions, which will be processed through Bakkt's hosting platform, Bitcoin Warehouse, which has been processing bitcoin storage and withdrawals since early September. A few days later, Bakkt announced that they had insured a $125 million policy for Bitcoin stored on their hosting platform.

Meaning in the field of encryption

For a long time, the Bakkt platform has been the focus of speculation and expectation. Many commentators believe that bitcoin futures trading in physical delivery represents a general leap forward for institutions in the field of bitcoin, especially encryption. The famous encryption analyst Tom Lee issued a message on Twitter on September 19:

“I am very optimistic about Bakkt and its ability to improve trust in the field of encryption.”

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