Intercontinental Exchange has announced that its Bakkt Bitcoin Daily Futures Contract will start trading on Dec. 12. Each trade “will result in physically delivered bitcoin” and will trade in U.S. dollar terms, the firm explained, adding that one contract will be listed for trading each exchange business day.
Date Set for Bakkt Bitcoin Futures
Intercontinental Exchange Inc. (ICE) announced on Monday that its U.S.-based futures exchange, ICE Futures U.S. Inc., “will list the new Bakkt Bitcoin (USD) Daily Futures Contract for trading on Wednesday, December 12, 2018.” The firm elaborated:
The Bakkt Bitcoin (USD) Daily Futures Contract is a physically-settled daily futures contract for bitcoin held in Bakkt LLC, ICE’s digital asset warehouse, and will be cleared by ICE Clear US Inc.
The firm continued to detail, “Each futures contract calls for delivery of one bitcoin held in the Bakkt digital asset warehouse, and will trade in U.S. dollar terms. One daily contract will be listed for trading each exchange business day.” ICE Futures U.S. is regulated by the Commodity Futures Trading Commission (CFTC).
ICE operates futures exchanges, OTC market services, central clearing houses, and the NYSE Group. Its central clearing service clears over 6.2 million futures and OTC contracts daily, the company claims.
Bakkt’s Original Plans
According to its 8-K filing with the U.S. Securities and Exchange Commission (SEC), ICE announced on Aug. 3 its plans to form Bakkt, which it described as a new company “with the goal of establishing a global platform for digital assets.” The firm informed the SEC:
Bakkt intends to work with BCG, Microsoft and Starbucks, among others, to create an integrated platform designed to enable consumers and institutions to buy, sell, store and spend digital assets on a seamless global network.
The filing further states that “As an initial component of the Bakkt offering,” ICE plans “to launch a 1-day physically delivered bitcoin contract along with physical warehousing in November 2018, subject to CFTC review and approval.” In preparation for launch, the firm emphasized that it was “in discussions with regulators and in the process of finalizing definitive agreements with select partners.”
Bakkt CEO Kelly Loeffler commented on Thursday:
Bakkt will provide the first federally regulated, physical delivery price discovery contract for the digital currency market.
The CFTC has already approved two other major derivatives exchanges for trading cash-settled bitcoin futures: the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME). The former launched its bitcoin futures product on Dec. 10 and the latter on Dec. 17 last year.
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Images courtesy of Shutterstock, ICE, and Bakkt.
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