Large institutions continue to expand: Bakkt launches BTC futures contract in Singapore

Interpretation today

Recently, the Intercontinental Exchange (ICE) announced that its Bakkt will launch a cash delivery BTC futures contract in Singapore on December 9.

It is reported that the BTC futures contract is a monthly futures contract, settled in cash (US dollars), will be listed on the ICE Futures Singapore (ICE Futures Singapore), after the completion of the transaction will be settled by the ICE Singapore Clearing House (ICE Clear Singapore) as a central counterparty . ICE Futures Singapore and ICE Clear Singapore are subsidiaries of ICE in Singapore and are regulated by the Singapore Monetary Authority (MAS).

Lucas Schmeddes, President and Chief Operating Officer of ICE Futures and Clear Singapore, said:

The new “Cash Settlement Futures Contract” will provide investors in Asia and around the world with more convenient and efficient financial instruments to capture or hedge the exposure of the BTC market. Based on the success of past futures contracts, using ICE's regulated, globally accessible market, cash-settled futures will provide a safe and compliant environment for BTC transactions.

ICE is the parent company of the 200-year-old New York Stock Exchange (NYSE). In terms of revenue, NYSE is the second largest financial exchange in the world after the Chicago Mercantile Exchange (CME). Bakkt was founded in August 2018 and has received including Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures (Li Ka-shing's investment fund), M12 (Microsoft's venture capital subsidiary), Pantera Capital, Payu, Naspers (South African media giant is also the parent company of Tencent's largest shareholder MIH) financial technology department and 12 well-known institutions including Protocol Ventures, with a golden key. Bakkt was approved by the US Commodity Futures Trading Commission (CFTC) and finally officially launched in September 2019.

Bakkt didn't go very well at the start, and the weekly trading volume in the first week was only $5 million. However, the recent trading volume has surged. According to data analysis agencies, Bakkt's monthly cumulative trading volume exceeded US$100 million for the first time on November 18, up 130.8% from US$43.5 million in the same period last month.

In order to meet the more diversified needs of investment traders, Bakkt will soon launch options contracts. Option contracts are European options, offering both cash delivery and physical delivery. At the same time, CME Group also plans to launch a BTC option contract in the first quarter of 2020.

Market research

The market has temporarily stabilized after the panic has fallen, but the overall reversal may take some time. The overall market is relatively calm, and the transaction is not active. On the daily line, BTC is still in a weak market, with low volatility, and the main circulation certificate is linked to BTC. In the long run, the BTC halving market is approaching. The recent shocks have provided investors with more suitable prices for the downside. It is still a good time to invest in digital assets such as BTC. Long-term holders can consider buying or bargaining. In.

risk warning

The price of digital pass is fluctuating violently. Investment digital pass is a high-risk investment behavior. Investors should reasonably assess their investment ability and risk tolerance, use leverage carefully, strictly control risks, and invest carefully. Investors are advised to keep in mind that investments are risky and require caution when entering the market.

Disclaimer

Personal opinions are for reference only. The analysis in the text does not constitute a recommendation for trading, and the profit and loss is self-sufficient. Welcome to reprint, but need to indicate the source.

About the currency

The full-price analysis team of coins has nearly 15 years of A-shares and overseas markets, and experience in futures, options and certificates.