Since the infamous day of 2017, when Bitcoin went on its incredible run, there has been talk of the introduction of a financial exchange backed by the world’s biggest cryptocurrency. One of the instruments that have been spoken about by crypto experts for many years are crypto futures from Bakkt, but delay after delay stopped this from happening—until now.
Positive News For Bitcoin
Over the past few years, nothing came to fruition despite several rounds of talks among regulators in the United States, and so, the product was not introduced. However, it seems that the wait is over since the crypto exchange Bakkt has now announced that it has been cleared to launch Bitcoin futures as early as September this year.
This past Friday, Bakkt announced that the New York State Department of Financial Services has awarded the exchange a New York state charter to start offering Bitcoin futures. Bakkt has spoken about the product for a long time, and naturally, it created its fair share of buzz for more than a year. The BTC futures contracts offered by Bakkt are going to be physically settled and have been a subject of excitement among crypto users for a long time. According to the announcement made on Friday, the Bitcoin futures will be available for purchase from September 23 this year.
Bitcoin is up over 10% since the announcement.
The Chief Executive Officer of Bakkt, Kelly Loefler, made the announcement in a blog post yesterday. She stated, “With approval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures.” This is a significant development, not only for Bakkt but also for the wider crypto community as more and more tokens vie for such derivative products. It is a market that may be at the nascent stages, but the potential for growth is huge, and it remains to be seen what sort of attention the Bitcoin futures contracts on Bakkt could attract.
Featured image: DepositPhotos © grejak