In what many people are calling as the biggest cryptocurrency news of the year, Intercontinental Exchange (ICE) has officially confirmed that they are launching their cryptocurrency trading platform Bakkt on December 12th, 2018. Bakkt will begin offering physically settled Bitcoin futures contracts. The news about Bakkt first came out in August this year.
The Bakkt Bitcoin Futures contract, once approved by the Commodity Futures Trading Commission (CFTC), will be ready for trading in December. The Bitcoin will be held in Bakkt LLC, ICE’s Digital Asset Warehouse, and will be cleared by ICE Clear US. Each physically settled futures contract will call for delivery of one Bitcoin into a customer’s account as opposed to traditional futures contracts based on fiat currencies.
Bakkt was launched by ICE with a vision to build a global ecosystem for digital assets where it can be traded and stored openly with regulations. Many experts are also of the opinion that this move may change the perspective of the US Securities and Exchange Commission (SEC) towards the crypto industry and we may well see Bitcoin ETF products being approved soon.
Many cryptocurrency-backed ETFs were rejected by the SEC this year due to reasons as varied as lack of liquidity, money laundering concerns and investor protections, among others.