Bakkt plans to launch a set of digital currency products in 2020, similar to Brent crude oil futures contracts

It's unclear who will lead Bakkt into 2020, but the company's product roadmap is already somewhat clear.

47281863302_e535461a59_c

Image source: visualhunt

In a recent blog post, the Intercontinental Exchange company announced that it will launch two new contracts and said it wants to emulate its parent company to provide a set of Brent Crude Oil Futures) similar digital currency products. A week ago, Bakkt CEO Kelly Loeffler was appointed to replace a vacant U.S. Senate seat in Georgia.

Bakkt launched a monthly bitcoin futures contract for physical delivery in September this year, and announced the launch of options related to bitcoin futures in October. It officially went online on December 8. Cash-settled futures linked to Bakkt's first contract also began trading on its Singapore subsidiary. According to the latest data, the trading volume of the new contract has exceeded 1,200 lots.

In contrast, Intercontinental Exchange uses its benchmark crude oil futures to launch several oil derivatives. The company stated:

"We are using similar tactics to expand our product portfolio at Bakkt. Through physical delivery of Bakkt Bitcoin monthly futures, we have a benchmark contract that provides a basis for us to develop complementary products based on customer needs."

In November, Bakkt announced that it would launch cash-settled bitcoin futures at ICE Futures Singapore, which is regulated by the Monetary Authority of Singapore. This marks the first time a regulated U.S. exchange has penetrated the booming Asian derivatives market, and it also shows that Bakkt is not limited to physical delivery contracts that have helped it develop the digital asset market. For cash-settled contracts, traders cannot choose to make physical delivery when the contract expires.

Bakkt also hinted at launching new derivatives in the future.

Maintain contract price integrity

Economist Alex Kruger recently noted that so far, traders seem less interested in physically-delivered Bitcoin futures contracts.

Bakkt's competitor CME Group launched a cash-settled Bitcoin futures contract in 2017, providing traders with the largest regulated cash-settled bitcoin futures market. However, Bakkt's layout may have some advantages. Although CME's futures trading is based on a base index consisting of spot cryptocurrency exchanges, Bakkt's futures trading is based on its underlying futures. This can better maintain the integrity of the price of the contract compared to the CME known for its spread.

Bakkt's launch of the contract in Asia means that it will compete with companies such as CoinFLEX and FTX, two companies that have entered the derivatives market successfully with diversified assets and high leverage. Currently, the unregulated market is dominant in crypto trading in Asia, but some insiders believe that in the long run, the possibility of a regulatory crackdown exists, which is very good for Bakkt.

According to the blog post, by 2020, in addition to trading contract products, Bakkt will continue to expand its hosting services and develop consumer-facing applications.

As for the company's next CEO, it seems that it has not been determined.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Opinion

One year after the FTX crash, have the once badly affected market makers in the crypto world recovered?

Alameda Research is the core trading company of Sam Bankman-Fried's failed crypto empire, and after the company's col...

Blockchain

PAData: FCoin potential victims or more than 2000 people, per capita loss or more than 25 BTC

Analyst | Carol Editor | Bi Tongtong Production | PANews Data Partner | Chain.info On February 17, the FCoin, which w...

Blockchain

report! This 14,000-person hacker organization is eyeing the exchange | DVP hackers are coming to an end

According to Baihuhui, in 2018, the economic loss caused by security problems in the digital currency industry was 2....

Market

Exploring the evolution of the stablecoin market structure: Why can USDT always dominate the first place?

Stablecoin competition is an endless topic, as the industry struggles in its second decade, hoping that the market ca...

Blockchain

Futures Exchange Industry 2019 Phase II Research Report

Summary of points: 1. From January to July 2019, the volume of digital passbook futures increased significantly. The ...

Blockchain

The consensus of using "money" to forge coins - a high-tech that condenses developers' miners' exchanges and users

In 1776, the American Revolutionary War broke out. Why is this war going to fight? The American side said that "...