Home News Bitcoin NYSE Parent, Intercontinental Exchange to Launch Physically-Settled BTC Futures Market on Dec....

NYSE Parent, Intercontinental Exchange to Launch Physically-Settled BTC Futures Market on Dec. 12

October 23, 2018 10:18
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After the much success of Bitcoin futures in Cboe and CME marketplace, Intercontinental Exchange (ICE), the owner of New York Stock Exchange has confirmed the launch of its own Bitcoin Futures market on Bakkt Platform in less than two months, on December 12.

According to the document released on Oct. 22, the Bitcoin Futures will be known as physically-settled daily futures contract and all the contracts will be backed by actual bitcoin held in ICE’s digital warehouse. Each of the contracts will be validated through ICE Clear US, the clearinghouse of the firm.

The press release explains:

“Each futures contract calls for delivery of one bitcoin held in the Bakkt Digital Asset Warehouse, and will trade in U.S. dollar terms. One daily contract will be listed for trading each Exchange Business Day.”

“A critical element to price discovery is physical delivery. Specifically, with our solution, the buying and selling of bitcoin is fully collateralized or pre-funded. As such, our new daily bitcoin contract will not be traded on margin, use leverage, or serve to create a paper claim on a real asset,” it said on the issue of hidden leverage.

Yesterday’s announcement follows the firm’s previous statement in September in which it announced that the contracts will be physically delivered BTC futures contract vs fiat currencies mainly against USD, EUR and GBP. Bakkt will not support margin trading and by refraining margin, leverage and cash settlement, it will enable a superior market integrity and price discovery. The exchange says it will act as a key to enhance the credibility of digital currencies.

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