ICE’s Bakkt Reveals First Crypto Product as Physical Bitcoin Futures
ICE’s Bakkt platform will begin its operations with physical Bitcoin futures, the company has said on social media.
Intercontinental Exchange (ICE) confirmed its Bakkt cryptocurrency platform’s first offering will take the form of physical Bitcoin futures. ICE, which also operates the New York Stock Exchange (NYSE) released new details Tuesday, September 25.
Bakkt, which ICE has said will be a “regulated ecosystem” for institutional investors aiming to get exposure to cryptocurrency, will offer futures against at least three fiat currencies: the U.S. dollar, British pound sterling and euro.
“Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP and EUR,” the company wrote on Twitter.
“For example, buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.”
The announcement builds on a previous confirmation in August that Bakkt would not offer margin trading or use leverage with Bitcoin, saying it did not want to “serve to create a paper claim on a real asset.”
As Bakkt’s November launch rose to prominence with few details known about its setup, well-known cryptocurrency figures levelled criticism at the institutional investor rush, arguing non-custodial trading could ultimately hurt Bitcoin’s reputation.
The much-anticipated Bitcoin exchange-traded funds (ETFs), currently awaiting approval from U.S. regulators, are differentiate from Bakkt’s offering by the fact that the traders of the former would not take delivery of any actual bitcoins.