Bakkt Delays Bitcoin Futures Launch, Announces Insured Crypto Custody Solution for BTC
Bakkt is delaying the launch of its Bitcoin futures product.
Originally set to launch on December 12th, the crypto platform from ICE, the owner of the New York Stock Exchange, says its new target date is January 24th.
“Given the volume of interest in Bakkt and work required to get all of the pieces in place, we will now be targeting January 24, 2019 for our launch to ensure that our participants are ready to trade on Day 1.
As is often true with product launches, there are new processes, risks and mitigants to test and re-test, and in the case of crypto, a new asset class to which these resources are being applied. So it makes sense to adjust our timeline as we work with the industry toward launch.”
The company says it’s using the extra time to add additional incentives for clients, and says it has obtained insurance for its Bitcoin custody service.
“…as we collaborate to help develop this asset class, we are taking opportunities in our start-up phase to expand our offering. We’ll share more about some of these new features in the coming weeks but as a start, I’m pleased to announce that we have insurance for bitcoin in cold storage and are in the process of securing insurance for the warm wallet within the Bakkt Warehouse architecture.
We are focused on every aspect of delivering an institutional grade crypto warehouse solution and believe this is a significant step in building confidence in this asset class.”
Bakkt is still waiting for approval from the Commodity Futures Trade Commission (CFTC) for the first federally regulated, physical delivery price discovery contract for Bitcoin on the market. The team says it’s going the extra mile meet financial regulations and onboard clients ahead of the launch.
“…our team is hard at work with customer onboarding and securing regulatory approvals. We’re focused on helping participants prepare for our launch, and we appreciate the tremendous collaboration among our clearing firms and customers.”
ICE first announced the coming of Bakkt in August.
The platform aims to offering regulated trading, clearing and custody, and a secured environment where consumers and institutions can seamlessly buy, sell, store and spend digital assets.