Margin trading support for Bitcoin [BTC] contract not supported in Bakkt, says Bakkt CEO
‘Bakkt 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.
This information has been officially reported by Medium on 20th August, 2018. ICE happens to be the operator of the world famous New York Stock Exchange along with 23 other exchanges. ICE has previously declared its plan to set up a “seamless” environment for cryptocurrencies.
The declaration involves the delivery of Bitcoin [BTC] contract by November, which depends on the approval of US regulators. In this current situation, the CEO of Bakkt, Kelly Loeffler has specified the three important factors pertaining to the project.
Opinion of Bakkt CEO
In her opinion, these vital features envisions to make an establishment of a “consistent regulatory construct”, “transparent, efficient price discovery” for carrying out trading of cryptocurrency and finally, infrastructure for pre and post trading at institutional grade.
Loeffler has described the physical delivery to be “a critical element“, furthermore, stating, “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.”
Loeffler has also mentioned that the current plans set the strategies of the platform apart from the contracts of Bitcoin [BTC] futures, which is existing. The plans have been offered on CBOE and CME, which eventually got settled in traditional fiat currency.
Integrity of the market will be better maintained and facilitate “trusted price formation”, as per her statement, when margin trading is prohibited. The step to uphold these two vital factors are fundamental to “advancing the promise of digital currencies.” The declaration by the CEO of Bakkt is nothing but a confirmation of the previously announced notification of ICE. The crpto community has warmly greeted the actual motive of the project.
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