Galaxy Digital and XBTO participate, Bakkt Bitcoin options contract completes first block trade

Intercontinental Exchange (ICE) has just announced the completion of the first major transaction of the newly launched Bakkt Bitcoin Monthly Options Contract.

According to the announcement, this Bakkt Bitcoin option was settled as a Bitcoin monthly futures contract two days before expiration. Galaxy Digital Trading and XBTO made their first transaction. A block transaction is defined as a single transaction that meets the required minimum limit, and the transaction is agreed upon between the buyer and seller through agreement and the transaction is confirmed by the exchange.


The main difference between futures and options is that contract holders have an obligation to sell futures contracts on expiration. As for option contract holders, there is no obligation to sell the contract when the contract expires, which gives the option more flexibility and may affect market prices.

The announcement added that market pricing is completely regulated and not affected by the non-compliant bitcoin spot market, which may experience unusual price fluctuations.

Trabue Bland, president of ICE Futures in the United States, said:

"Based on our physical delivery of Bitcoin futures, these options contracts provide our customers with a new, capital-efficient tool for trading and managing volatility, price risk and revenue generation."

Josh Lim, head of trading strategy at Galaxy Digital Trading, said:

"We believe that the development of institutional market infrastructure will help digital assets achieve greater liquidity. The emergence of centrally cleared Bitcoin options on compliant U.S. exchanges is an important milestone in this market."

XBTO's head of trading Paul Eisma also commented:

"By launching bitcoin options on a large trading platform, ICE and Bakkt provide valuable tools for professional investors and business hedgers to properly manage risk in a rapidly maturing asset class. The XBTO looks forward to seeing more and more Of non-linear institutional trading products enter the digital asset market. "

It's not just Bakkt who is interested in Bitcoin options contracts. Earlier this month, the Chicago Mercantile Exchange (CME) detailed the BTC options contract to be launched on January 13.

Previously, such institutional investment products were considered bullish in the industry, but investor confidence in them has weakened in recent months.

Most people in the cryptocurrency community are not optimistic about futures contracts because they allow a lot of money to short this asset, which will have a ripple effect on the bitcoin market. Singapore ICE's latest bitcoin trading product is settled in cash and does nothing to bitcoin.

Since the first launch of Bitcoin futures in December 2017, the price of this underlying asset has plummeted by 65%.

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


Was this article helpful?

93 out of 132 found this helpful

Discover more


JPMorgan CEO Threatens Crypto: A Criminal’s Best Friend or Innovation’s Gateway?

In a recent statement, Dimon expressed his belief that cryptocurrency companies should undergo the same AML regulatio...


Osaka Digital Exchange: Transforming Japan’s Financial Landscape, One Token at a Time

Fashionistas, get ready for a game-changing development in Japan's financial world! ODX is launching the first-ever s...


TWT Token Skyrockets as it Rides the Binance Futures Wave

Fashionista, the price of Trust Wallet Token (TWT) has experienced a significant increase of 18% in just one week, ma...


Justin Sun's HTX Crypto Exchange witnesses $258M outflow post-hack The Shockwaves of a High-Stakes Breach

The popular fashion exchange, HTX (formerly known as Huobi), has experienced a huge loss of $258 million in funds sin...


Breaking News: Andreessen Horowitz Plans to Raise $3.4 Billion Fund for Early-stage Crypto Businesses

According to reports, Andreessen Horowitz is preparing to gather a $3.4B fund specifically for upcoming crypto ventur...


Raoul Pal owns less than 2% of the cryptocurrency DogecoinGirlfriendHat (WIF) despite a 43% increase in the market.

Raoul Pal revealed that he possesses less than 2% of the popular memecoin dogwifhat (WIF), causing a surge in market ...