Bakkt says it’s ready to roll out cash-settled monthly futures contracts for Bitcoin.
The Intercontinental Exchange-operated platform will list the contract on ICE Futures Singapore by December 9th.
It will be settled against data from the physically delivered Bakkt Bitcoin (USD) Monthly Futures contract, according to an announcement from ICE.
Lucas Schmeddes, president and chief operating officer of ICE Futures and Clear Singapore, says the product is another way for Bitcoin investors to hedge.
“Our new cash settled futures contract will offer investors in Asia and around the world a convenient, capital efficient way to gain or hedge exposure in Bitcoin markets.
Building off the success of our deliverable futures contract, the cash-settled futures will leverage ICE’s regulated, globally accessible market to offer a safe, secure and compliant environment for the trading of bitcoin.”
ICE Singapore is inviting people to comment on the details of the contract specifications and proposed rule changes by November 29. The new contract will be cleared by ICE Clear Singapore, which is regulated by the Monetary Authority of Singapore.
Bakkt’s Bitcoin futures trading went live in late September. The development, billed as the next step towards harnessing institutional investment in crypto, got off to a slow start but picked up steam in late October.
Daily summary of Friday's Bakkt Bitcoin Monthly Futures:
💸 Traded contracts: 1183 – New ATH 🚀
📈 Day before: 331
📈 Previous all time high: 640
— Bakkt Volume Bot (@BakktBot) October 26, 2019
Since then, its volume numbers have been up and down – but consistently better than they were at launch.
ICYMI: Wednesday's Bakkt Bitcoin Monthly Futures:
📈 Traded contracts: 1505 ($12.30 million, +33%)
🚀 All time high: 1756 (11/8/2019)
💰 Open interest: $1.13 million (-9%)
— Bakkt Volume Bot (@BakktBot) November 21, 2019