Bakkt Reveals Bitcoin Futures Details – Here’s How it is One-Up on CME

The much anticipated Bakkt ‘Bitcoin [BTC] futures contracts’ is scheduled for launch on 23rd September 2019. While these are not the first regulated Bitcoin [BTC] futures contract with BitMEX and CME currently leading the space, Bakkt’s is one-up on all existing platforms.
The Bakkt contracts will be margined and as mentioned before – can be settled using Bitcoins itself. Hence, it can also be used as an alternative to unregulated spot markets as it has custody arrangements as well. Moreover, Bakkt will offer:
• Bakkt Bitcoin (USD) Daily Futures
• Bakkt Bitcoin (USD) Monthly Futures
The CME provides only monthly Bitcoin Futures contracts. The daily contracts would likely increase the volatility in the everyday price of Bitcoin. Nevertheless, the regulated platform will improve the fundamentals around Bitcoin [BTC] massively.
Rhythm, a crypto-trader talked about the advantage of Bakkt over CME and its effect on Bitcoin markets, he tweeted,
Unlike other futures exchanges, this is settled in bitcoin. Actual bitcoin is paid out, not just the fiat equivalent to the price of bitcoin.
The result is better price discovery and liquidity for bitcoin.
Kelly Loeffler, the CEO of Bakkt, told the media, that the core service Bakkt will offer is “secure, regulated custody,” alongside its institutional-scale trading.
The monthly futures contract on Bakkt is based on “forward pricing curve” for investors, giving them an option to see prices up to 12 months. She specifically talked about the halving schedule due next year; which will be enabled for speculation through the monthly contracts.
Also Read: 5 Reasons Why Bakkt’s Launch is BIG News for the Crypto Community
Furthermore, as the daily contracts are margined, it will provide a lot of space for institutional money to get involved in the day to day activities around it.
The Bakkt launch data announcement has had an extremely positive effect on the Bitcoin’s price. The price of Bitcoin at 3: 30 hours UTC on 20th August 2019 is $10,800. Bitcoin has gained about 6% since the announcement.
Do you think that daily futures contracts will increase the volatility or decrease it? Please share your views with us. 
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Source: CoinGape

Bakkt to launch user testing Bitcoin futures today

Bakkt, a global digital asset firm owned by International Exchange [ICE], announced that the organization will launch acceptance testing for its Bitcoin futures contracts today [22nd July 2019]. In a recent medium post released by Adam White, COO at Bakkt, it was mentioned that the Bitcoin futures product would be listed and trading will be […]
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Source: AMB Crypto

Bitcoin [BTC] Futures Contracts get a green signal from the regulatory authorities

Bitcoin Daily Futures contract is reportedly getting a green signal from the authorities which have been a much-awaited Bitcoin Futures that is being launched by New York Stock Exchange [NYSE]’s sister company Bakkt, as per Wall Street Journal.
The Bitcoin Futures contract launched Intercontinental Exchange [ICE] is basically for the institutional players that haven’t been able to get into the cryptocurrency-frenzy. Now that Bakkt is getting approval from the authorities the futures contract will see a massive adoption from institutions due to Bitcoin’s inherent demand.
Bakkt has been rigorously working with Commodity Futures Trading Commission [CFTC] to get the much-needed green-signal. The contract was scheduled to be launched on December 12, but it was postponed to late January 2019. ICE announced the rescheduling on November  20, 2018 stating:
“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 customer and clearing member onboarding prior to the start of trading and warehousing of the new contract.”
Bakkt announced the same on their twitter saying that there is still work left to be done and hence it will be delayed.
The approval would make it the first Bitcoin Futures contracts to pay in cryptocurrency instead of the usual, cash.
Moreover, many prominent people in the Bitcoin community are under the hopes and excitement that this approval would kick-start the anticipated bull run for Bitcoin.
Alex Krüger, a prominent trader and an economist, tweeted his enthusiasm:

Adam Back, a cypherpunk, cryptographer and the CEO of Blockstream displayed his support by tweeting:
“looking forward to @bakkt one day physical delivered #Bitcoin future, traded on ICE’s electronic trading platform, and physically delivered to Bakkt Warehouse for custody.”
CryptoChartsJoe commented:
“Believe it when I see it, we’ve been lied to many times before!”
The post Bitcoin [BTC] Futures Contracts get a green signal from the regulatory authorities appeared first on AMBCrypto.
Source: AMB Crypto

CME Bitcoin Futures Contract Hits Volume High of 5,053 Contracts in Q3, up by 41%

CME Group announced its average daily volumes in the third quarter. Bitcoin futures ADV rose 41 percent to 5,053 contracts with open interest increasing by 19 percent to 2,873.
CME Group Announces Bitcoin Futures Contracts Volume Up By 41%
Chicago Mercantile Exchange (CME), described by The Economist as “the biggest financial exchange you have never heard of,” was the first large financial markets operator to roll out BTC futures contracts. The event, which took place in mid-December, was a key driver of the cryptocurrency fever of late 2017.
With 10 months of Bitcoin futures trading under the belt, CME Group has published its average daily volume report for the third quarter. “In Q3, Bitcoin futures average daily volume rose 41 percent and open interest was up 19 percent over Q2 . Learn how market participants are using BTC to manage risk in changing markets,” it said.

In Q3, Bitcoin futures average daily volume rose 41% and open interest was up 19% over Q2 . Learn how market participants are using BTC to manage risk in changing markets. https://t.co/Yt41SzsHku pic.twitter.com/Kw4OX0QaKT
— CMEGroup (@CMEGroup) October 17, 2018

Open interest for CME Bitcoin futures contracts has risen from 1,523 contracts in Q1 2018 to 2,405 contracts in Q2, before another bump to 2,873 contracts in Q3. Open interest is the total number of open or outstanding futures contracts that exist at a given time.
Average daily volume has gone from 1,854 contracts in Q1 2018 to 3,577 contracts in Q2 and then 5,053 contracts in Q3. Each contract unit is composed by five Bitcoins as defined by the CME CF Bitcoin Reference Rate (BRR). This means that the 5,053 contracts traded in Q3 were composed by 25,265 BTC, which are worth approximately $162 million in today’s rate.
Investors use CME Bitcoin futures contracts to hedge Bitcoin exposure or harness its performance. Traded on the CME Globex platform, the October 2018 futures contract is pricing Bitcoin at $6,380 at the moment of writing, having hit a low $6,330 and a high at $6,480 in today’s market. The December 2018 futures contract is trading at $6,390.
Globally, CME Group averaged 15.6 million contracts per day in the third quarter of 2018, down one percent from the third quarter of 2017, according to the report. This puts the CME Bitcoin futures contract into perspective. When compared to the rest of the contracts traded on the exchange operator worldwide, Bitcoin futures are insignificant, weighing only 0.03% of all trading at CME Group.
Bitcoin futures contracts are seen as a way in for institutional investors, which are found to be the drivers of a future rally in the Bitcoin and cryptocurrency markets. A number of cryptocurrency hedge funds have entered the market in 2018 and several high-profile institutions, including Harvard, Stanford, Yale, and MIT, have trusted their money in at least one fund.
Featured image from Shutterstock.
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