Bakkt’s Bitcoin futures trading is now live.
The development, billed as the next step towards harnessing institutional investment in crypto, was announced on Twitter Sunday night, ahead of schedule.
We’re live!
The first Bakkt Bitcoin Futures trade was executed at 8:02pm ET at a price of $10,115
— Bakkt (@Bakkt) September 23, 2019
Bakkt Bitcoin Futures are now actively trading on ICE Futures U.S., while the Bakkt Warehouse continues to onboard bitcoin
We take our customers’ trust seriously, and are excited to serve this market
— Bakkt (@Bakkt) September 23, 2019
The Intercontinental Exchange subsidiary is pushing to leverage its deep Wall Street ties and allow big money the first opportunity to purchase Bitcoin futures contracts that are physically settled in BTC instead of cash.
In August, after a year-long effort, the New York-based exchange successfully won the required regulatory approvals. The company acquired a New York state trust charter through the New York State Department of Financial Services (NYDFS), opening the door for its Bitcoin futures contracts.
A few days prior to the launch, Thomas Lee, the managing partner and head of research at Fundstrat Global Advisors, noted that Bakkt’s new marketplace could open doors for crypto.
I am very positive on @Bakkt and it’s ability to improve trust with institutions to crypto https://t.co/7icnJp76GE
— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) September 20, 2019
With the official launch underway, Bakkt is already warning the crypto community on Twitter to follow best practices and to steer clear of scammers and Bakkt impersonators who are already promoting fake crypto giveaways from the new exchange.
Tweets Bakkt,
“@Bakkt” is our only official Twitter handle – we want you to stay safe and avoid scams!
Bakkt will never use social media to:
• Request sensitive information
• Give away bitcoin or any other cryptocurrency
• Publish a wallet address for deposits”
While CME Group and Cboe Markets both launched Bitcoin futures in December of 2017, Bakkt’s Bitcoin futures contracts are the first to offer physical delivery of Bitcoin instead of cash settlements. Cboe, however, discontinued its contract earlier this year.
Meanwhile, the newly launched VanEck SolidX Bitcoin Trust, another institutional crypto offering designed to entice big investors, got off to a slow start, issuing one basket with 4 BTC or approximately $40,000 within its first three days.
Those disappointments have only upped the pressure on Bakkt, as the industry eyes its early performance.
With expectations riding high and after months of delays following the company’s efforts to satisfy regulators, Bakkt plans to deliver on its expectations.
In a blog post following the NYDFS approval, Bakkt CEO Kelly Loeffler indicated why she expects the exchange to become a big player with a major impact in the cryptosphere.
“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 offers customers unprecedented regulatory clarity and security alongside a regulated, globally accessible exchange in a market underserved by institutional-grade infrastructure.”
Bakkt says its plan to reel in Wall Street investors will take time, and it could take months to determine whether its efforts will succeed.
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