Bakkt Reportedly Preparing to Launch Cash-Settled Bitcoin Futures

Siamak Masnavi

According to Adam White, the COO of Bakkt, the crypto custodian and Bitcoin futures exchange subsidiary of Intercontinental Exchange (ICE), the startup is hoping to launch cash-settled Bitcoin futures before the end of the year.

Per a report by Coindesk, White said that Bakkt was planning to offer cash-settled Bitcoin futures (in addition to its existing daily and monthly physically-settled Bitcoin futures) while speaking at a panel titled "The Real Wall of Money: Crypto's Coming Derivatives Boom" at Coindesk's Invest: NYC conference in New York City on Tuesday (November 12):

We have the intention of offering a cash-settled contract as well...

Coindesk was told by sources familiar with the matter that this new product will be offered via ICE Clear Singapore, the subsidiary of ICE that "provides secure, capital-efficient counterparty risk management and post-trade services for the Asian derivatives market," and will be traded on ICE Futures Singapore.

However, Bakkt's cash-settled Bitcoin futures, which will become the main competition in the U.S. for CME's cash-settled Bitcoin futures, will be available to traders worldwide (just like the existing physically-settled Bitcoin futures).

This report also says that Bakkt is hoping to launch before the end of 2019, but that it still has not received the go-ahead from the Monetary Authority of Singapore (MAS).

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