Bakkt’s Bitcoin futures contract to get regulatory nod soon

Bakkt is moving closer to getting its daily Bitcoin futures contract approved by the regulators. According to a Wall Street Journal report the contract introduced by the Intercontinental Exchange, the NYSE stock exchange owner, is expected to get CFTC [Commodity futures trading commission] approval soon.

The futures contract was expected to be launched on December 12 but was rescheduled to January 24, 2019. Bakkt CEO, Kelly Loeffler, said that the delay was due to all the work that was required to “put all the pieces in the place”. “ICE Futures U.S., Inc. will list the new Bakkt Bitcoin (USD) Daily Futures Contract for trading on trade date Thursday, January 24, 2019, subject to regulatory approval. The new listing timeframe will provide additional time for the customer and clearing member onboarding prior to the start of trading and warehousing of the new contract,” said Loeffler at the time.

The exchange has since been working with the CFTC to build a business plan that would comply with the CFTC regulations. The regulators have put restrictions on the customer’s bitcoins that can be held by the exchange. The regulations also demanded clarity on the cybersecurity troubles that might be faced by the exchange and the financial liability of the exchange during a hack.

Nasdaq Inc is also planning to launch Bitcoin futures at the beginning of 2019, according to a report. The U.S. based stock exchange revealed plans to offer Bitcoin futures to users last year. The exchange plans to start trading futures in the first quarter of 2019. Nasdaq has also been working to get the futures approved from Commodity Futures Trading Commission [CFTC].

Bitcoin futures was first introduced by Cboe [Chicago Board Options Exchange], the Chicago based stock exchange, in December 2017. Later the CME [Chicago Mercantile Exchange] group launched its own version of Bitcoin futures contracts. Bitcoin futures on CME is based off four markets while its just one at Cboe.

Many speculators suggest that Bakkt bitcoin futures approval would begin a bull rally for cryptocurrencies in the market. Alex Kruger, the crypto analyst indicated, ”Possible outlook for BTC: First, the bull run on BAAKT & renewed ETF approval narrative early 2019. Second, ETF denied Feb/27, massive crash, goodbye 6k, hello 4k, cleanse all weak hands Lastly, having 2020 narrative and re-adjustments lead to a sustained bull run for the rest of 2019 & 2020.”

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