Bakkt, a subsidiary of the Intercontinental Exchange (ICE), based in Atlanta U.S, is going to start accepting testing for its Bitcoin futures starting tomorrow, July 22, 2019.
Adam White, the Chief Operating Officer at Bakkt revealed in a recent blog post that the company’s Bitcoin futures will be listed and traded on ICE Futures U.S. and cleared at ICE Clear U.S.
The Digital Asset Markets is in Need of Better Trading Tools, as well as More Regulatory Clarity
White, who was the Former Vice President at Coinbase, noted that the crypto market is lagging behind when it comes to the number of institutional investors engaged participating in it, compared to other financial markets. As a result, crypto market infrastructure must be improved and clear regulatory guidelines should be established in order to attract these institutional clients.
The COO further explained that the crypto markets have insufficient liquidity and relatively lower trading volumes. Also, it lacks price transparency due to regulatory uncertainty and limited availability of proper trading tools for professional investors.
Bakkt is Set to Offer Physically-settled Bitcoin Futures Contracts
Bakkt’s management is looking to provide institutional investors with compliant financial products through the provision of regulated custody as part of their daily and monthly margined Bitcoin futures contracts. There is also a plan in place to build a trusted infrastructure for its open, seamless, global network, which will be used to securely buy, sell, and trade digital assets.
Reportedly, one of the firm’s most highly anticipated product offerings is physically settled daily futures contracts for Bitcoin.
There is a plan in place to make these contracts available to investors in more than 30 different countries.
Bakkt is Currently Awaiting For Regulatory Approval
Currently, Bakkt’s management is waiting for regulatory clearance from the Commodity Futures Trading Commission (CFTC) before launching its crypto futures products.