ICE to offer physical Bitcoin futures through the Bakkt platform
Intercontinental Exchange (ICE) has announced on Twitter that it will have the first offering of physical Bitcoin futures through its Bakkt cryptocurrency platform. The Twitter announcement was made on 25 September.
The bitcoin future offerings will be made against three different fiat currencies namely the USD, GBP, and the Euro. The main aim of this offering is to send some exposure to the institutional investors in the cryptocurrency stream through the “regulated ecosystem” Bakkt.
“Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP, and EUR. For example, buying one USD/BTC futures contract will result in the daily delivery of one Bitcoin into the customer’s account,” read the tweet.
Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP and EUR. For example, buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.
— Bakkt (@Bakkt) September 25, 2018
As reported earlier by BC Focus, ‘Bakkt’s plan’ of Intercontinental Exchange [ICE] will not support margin trading for Bitcoin [BTC] contract. Bakkt involves the forthcoming establishment of new Bitcoin [BTC] market under the shelter of regulations and guidelines.
“Specifically, with our solution, the buying and selling of [B]itcoin is fully collateralized or pre-funded. As such, our new daily bitcoin contract will not be traded on margin, use leverage or serve to create a paper claim on a real asset,” said Kelly Loeffler, CEO, Bakkt.
As per her statement, only when margin trading is prohibited integrity of the market be better maintained and “trusted price formation” facilitated. These two important factors are fundamental to “advancing the promise of digital currencies.” This declaration by Loeffler is a confirmation of the previous announcement of ICE. The whole of the crypto economy has welcomed the actual motive of the project.
Image via Shutterstock
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