The Intercontinental Exchange (ICE) is launching bitcoin choices contracts by means of its subsidiary Bakkt.
Bakkt introduced Thursday that it might “launch the first regulated options contract for bitcoin futures,” including a brand new product to its present slate of physically-settled bitcoin futures contracts. CEO Kelly Loeffler stated in a Medium submit that the contracts have been in-built response to buyer suggestions, and that ICE Futures US self-certified the contract by means of the U.S. Commodity Futures Trading Commission (CFTC).
“We’re committed to bringing trust and utility to digital assets and the options contract is an example of the many products we’re developing for regulated markets,” she wrote. “The Bakkt Bitcoin Options contract will be based on the benchmark Bakkt Monthly Bitcoin Futures contract and represents another important step in developing this asset class for institutional investors, their customers and investors.”
Notably, clients can have the selection of choices contracts settled with money, that means clients obtain the fiat equal to the contract’s worth at expiration, or bodily, that means they obtain the precise bitcoin.
When Bakkt launched its bitcoin futures contract a month in the past, the corporate noticed low buying and selling quantity. However, it seems to have picked up in current days.
Bakkt quantity chart by Galen Moore for CoinDesk
Loeffler added:
“We’ve been working closely with market participants to build liquidity, create market transparency and build open interest. Notably, we saw a record 590 contracts of Bakkt Bitcoin Monthly Futures change hands yesterday, October 23. We also completed a milestone with seamless physical deliveries in both our daily and monthly bitcoin futures contracts.”
Bakkt is becoming a member of CME in launching choices. The Chicago-based trade introduced it might launch bitcoin choices on high of its futures contracts within the first quarter of 2020.
In addition to its choices contracts, Bakkt is launching a market maker program to spice up buying and selling of its month-to-month contract, in keeping with a letter addressed to the CFTC.
“The Exchange believes the new Program will incentivize additional liquidity and volume in the new Bakkt Bitcoin (USD) Monthly Futures Contract,” the letter states.
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