The launch date for Bitcoin futures on the Bakkt platform has been announced.
Bakkt is a platform for trading, storing, and spending digital assets, and was created earlier in 2018 by Intercontinental Exchange—the parent company of the New York Stock Exchange (NYSE).
Bitcoin Futures Launch Date
According to a document released today, the launch date for trading is December 12th, 2018. The document explains the idea further:
“Each futures contract calls for delivery of one Bitcoin held in the Bakkt Digital Asset Warehouse, and will trade in US dollar terms. One daily contract will be listed for trading each Exchange Business Day.”
The contracts will be physically settled and cleared by ICE Clear US Inc.
Earlier in September, ICE announced that the “first contracts will be physically delivered BTC futures contracts versus fiat currencies.”
Why Create Bakkt?
Bakkt is aiming to offer a federally regulated market for Bitcoin. Through its futures program, it will try to make Bitcoin a secure and trusted global currency with hopes of major adoption by big financial institutions.
Bakkt will create a path for these major money managers to offer Bitcoin mutual funds, pension funds, and ETFs as highly regulated, mainstream investments.
Bitcoin futures offer traders the chance to bet on the price of Bitcoin at a later date. Traders can bet and profit accordingly.
The first major exchange to launch Bitcoin futures was the Chicago Board of Exchange (CBOE) in December 2017. The launch of Bitcoin futures caused mania throughout the market, to the point that trading had to be stopped twice due to CBOE speed breakers, which slow or pause trading when price movements are excessive.
Now similar to ICE’s launch of Bitcoin futures, NASDAQ is preparing to launch its own contracts soon.
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