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.

bakkt

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!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Behind 106 market cases, we discovered the impact of the BTC spot market structure on price discovery

(Onion Note: "Price Discovery refers to the process by which buyers and sellers reach a transaction price for th...

Blockchain

OTC is a hotbed of money laundering, can the exchange stay out of the way?

What should I do if my account is accidentally frozen? The over-the-counter market (OTC) is becoming more and more at...

Blockchain

Lawyer's point of view | Analysis of the regulatory environment behind the investigation of the currency exchange

Author: Hu Tao Source: The chain catcher's recent investigation of the currency exchange has triggered industry ...

Market

Semafor The US Department of Justice is considering fraud charges against Binance, but is concerned about a FTX-style run in the market.

Insiders say that federal prosecutors are concerned that if they were to prosecute Binance, it could lead to a run on...

Blockchain

Thousands of exchange platform license thresholds reach the cloud or 5 platforms enter the Hong Kong Securities Regulatory Commission's sandbox

Source: 21st Century Business Herald Author: Zhou scorching The confrontation between the United States and Iran has ...

Blockchain

99% of the transaction volume is fraudulent, what is left behind the false prosperity of the currency circle?

The amount of trading fraud has been ridiculous for the people of the coin circle, but all along, there are always bl...