Bakkt, the first of its kind, among bitcoin derivative may receive approval, despite problems plaguing the bitcoin futures market, according to news portal Wall Street Journal (WSJ).
What sets Bakkt apart from other bitcoin derivatives is that it pays out entirely in cryptocurrency, instead of settling in cash. The WSJ report noted that while the application is still under the Commodity and Futures Trading Commission (CFTC), review, it will definitely be launched in 2019.
Speaking on the possibilities, Kelly Loeffler, chief executive of the New York Stock Exchange owner Intercontinental Exchange (ICE) cryptocurrency business, which has been instrumental in backing the contract said, “Once digital assets have more trust and regulation, people will be more comfortable using digital assets as currency.” She added, “It’s great to have cash-settled, but there’s a need for physical delivery of bitcoin.”
Last month, Bakkt announced that its launch which was supposed to take place on December 12, had been pushed back to January 2019, as earlier reported by Crypto-News India. The reason behind this was given in a medium post by Loeffler. At the time she had said, “The “volume of interest” in the company and the “work required to get all the pieces in place” contributed to the delay. ICE Futures U.S., Inc. will list the new Bakkt Bitcoin (USD) Daily Futures Contract for trading on trade date Thursday, January 24, 2019, subject to regulatory approval. The new listing timeframe will provide additional time for customer and clearing member onboarding prior to the start of trading and warehousing of the new contract.”
Apart from Bakkt, there are several other bitcoin derivatives contracts in place, which are backed by stock market giants such as Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME). However, it is important to note that the Securities and Exchange Commission (SEC) and the CFTC have not yet spoken a word on the pending futures.
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