Institutional Interest in Bitcoin Futures On A High Says ICE Executive

In an interview with The Edge Markets, ICE Vice-President Jennifer Ilkiw said that a larger number of institutional investors are taking interest in trading Bitcoin Futures. 
Exchanges Lack Risk Management Procedures
Ilkiw said that institutional investors are unable to trade the same on existing exchanges as they continue to be unregulated entities. Furthermore, many of the exchanges lack risk management procedures and comprehensive market surveillance and supervision system to spot market manipulation.
“We have a lot of high-frequency traders who are interested in it. There are also institutional fund managers and brokers calling us to say that they want to trade bitcoin futures,” 
In March, the CBOE had announced that it was reconsidering its approach of offering Bitcoin futures contracts.
ICE is Trying to Fill Gaps
A CNBC news report then suggested that said the CBOE’s decision to stop offering the product could possibly be due to a drop in demand in the retail market last year. This was when Bitcoin prices crashed to about US$13,000 from a peak of about US$20,000.
“In general, there is a lack of institutional infrastructure and platforms to trade [bitcoin] with. That is why we are trying to fill the gaps,”
said Ilkiw.
She then mentioned that this was primarily the reason why ICE, together with other investors, set up the Bakkt Trust Company LLC to offer institutional investors Bitcoin custody services and “physically delivered” Bitcoin Futures contracts
These are offered through a partnership between Bakkt, ICE Futures US. ICE Clear US.  The former provides futures and options trading whereas the latter handles confirmation, settlement, and delivery of transactions.  
She further added that Bakkt bitcoin futures contracts allow investors to trade one Bitcoin per contract. Also, users can trade up to 100,000 contracts. Bakkt offers investors two types of bitcoin futures contracts – daily and monthly futures contracts. The settlement date for its monthly contracts is on the third Wednesday of the month and the delivery of bitcoins takes two days. 
ICE Offers Adequate Protection Measures
Furthermore, Ilkiw suggested that ICE has sound protection measures in place as it has a large pool of investors and the amount of money involved in a single case of fraud could be huge. 
“The existing exchanges are relatively small and may only offer cryptocurrency futures contracts to retail investors. An investor may lose a lot of money trading with them, but the counterparties will still receive their money while the exchange continues to operate,” 
she added.
Future Prospects
When questioned on if major exchanges would adopt a ready approach before getting involved with Bitcoin, she said that ICE launched Bakkt to position itself for the future trends of digital assets, including other asset-backed and non-asset-backed cryptocurrencies.
Will Bitcoin Futures continue to create the same hype in the near future as well? Will we see more exchanges rolling out Futures products? Let us know, what you think in the comments below!
The post Institutional Interest in Bitcoin Futures On A High Says ICE Executive appeared first on Coingape.
Source: CoinGape

BitMEX’s Bitcoin Futures 24 hr Volume Drop Below $1 Bn, Records the Lowest in Months

Saturday turned out to be the slowest day for crypto markets as total Bitcoin Futures volumes on the BitMEX platform was recorded to be a minor $948 Million. 
Are Bitcoin Futures Trading Low? 
Source- Skew Markets
While the leading derivatives exchange BitMEX only traded futures worth $948 Million, Binance Futures recorded a trading volume of 16k BTC in an hour. Also, recently the 24-hour trading volume of Binance’s futures markets was seen to have crossed 30,500 BTC.
Denominated in USDT, the equivalent of this would come to over $250 MM. Further, the figures were also said to have exceeded those of Binance spot trading which recorded a relatively lower 24-hour trading volume of 219,868,241 million denominated in USDT.
Source- Binance
On the 9th of October, the trading volume of Bitcoin (BTC) futures on the Intercontinental Exchange’s (ICE) Bakkt platform reportedly soared to 224 contracts on Oct. 9, recording an increase of 796%. However, the start of trading on Bakkt showed poor volumes – merely 72 BTC on the first day. Interestingly, the situation has turned for the better and seems to have picked up a relatively healthy pace.
Source- Bakkt Bot
The low trading volume noted on the BitMEX platform could be one of the several instances of a bad trading day and it might gradually pick up.
Furthermore, despite the decline in Bitcoin prices, customer interest in CME Bitcoin futures remained strong during Q3 with daily Open Interest (OI) of over 4.6K contracts, up 61% vs Q3 2018.
Source- Twitter
As the market continues to garner more opportunities for Bitcoin Futures, it is predicted that Bitcoin prices will gradually increase as futures contracts continue to have a healthy trade volume. 
Bitcoin Perpetual Funding Rates in Positive Territory
All Bitcoin perpetual funding Rates are currently in positive territory. A Perpetual Contract is a derivative product that is similar to the traditional Futures Contract.
Source- Skew Markets
The Funding Rate comprises two main parts the Interest Rate and the Premium / Discount. This rate aims to keep the traded price of the perpetual contract in line with the underlying reference price.  Thus,  the contract mimics how margin-trading markets work as buyers and sellers of the contract exchange interest payments periodically.
Will Bitcoin Futures continue to intrigue investors and traders in the long run? Let us know what you think in the comments below!
The post BitMEX’s Bitcoin Futures 24 hr Volume Drop Below $1 Bn, Records the Lowest in Months appeared first on Coingape.
Source: CoinGape

Galaxy Digital and XBTO Making First Block Trade of Bakkt Bitcoin Futures

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Galaxy Digital and XBTO Making First Block Trade of Bakkt Bitcoin Futures
Intercontinental Exchange has completed the first block trade of Bakkt Bitcoin futures contracts which was executed between digital assets merchant bank Galaxy Digital and crypto investment firm XBTO.
Galaxy Digital and XBTO Making First Block Trade of Bakkt Bitcoin Futures

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Source: CoinSpeaker

Amidst Fears of U.S. Recession, Investors Prefer Gold Over Bitcoin

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Amidst Fears of U.S. Recession, Investors Prefer Gold Over Bitcoin
Gold continues to be the safe haven for global investors when it comes to parking their money in secure assets. Bitcoin, on the other hand, has failed to win the trust of big investors at this stage.
Amidst Fears of U.S. Recession, Investors Prefer Gold Over Bitcoin

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Source: CoinSpeaker

Bakkt’s Launch Caused Bitcoin Price Loss, Says JPMorgan Analysts

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Bakkt’s Launch Caused Bitcoin Price Loss, Says JPMorgan Analysts
Analysts from JPMorgan have suggested that Bakkt is largely the reason why Bitcoin price fell below $8,000 last week. Even though activity has picked up a bit, the market is still a little discouraged. 
Bakkt’s Launch Caused Bitcoin Price Loss, Says JPMorgan Analysts

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Source: CoinSpeaker

Will Bakkt Cause Cryptocurrency Markets to Explode? PrimeXBT Research

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Will Bakkt Cause Cryptocurrency Markets to Explode? PrimeXBT Research
New research from PrimeXBT shows the potential impact that Bakkt will have on the crypto market and if it can help cause Bitcoin to reach the price projections that the crypto community hopes for.
Will Bakkt Cause Cryptocurrency Markets to Explode? PrimeXBT Research

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Source: CoinSpeaker

Fundstrat’s Thomas Lee “Very Positive” About Bakkt’s Impact; 3 Days to Launch!

The popular “game-changer” project which proposes physically delivered bitcoin futures, Bakkt, launches later in September. While Fundstrat CEO Thomas Lee has shared that he is “very positive” about the Bakkt launch because of the impact it will have on institutional investment, the crypto Twitter community is busy speculating how it will affect the price of bitcoin. 
Bakkt Will Help Build Institutions’ Trust in Crypto
Renowned American businessperson, financier and investor and who is known for being one of the early pioneers in private equity, Thomas Lee, took to Twitter to weigh in on the impact of Bakkt on institutional investment. Thomas Lee says,

I am very positive on @Bakkt and it’s ability to improve trust with institutions to crypto https://t.co/7icnJp76GE
— Thomas Lee (@fundstrat) September 20, 2019

He shared this opinion in support of a tweet made by another user, Mia Tam, who believes that Bakkt’s launch in the next few days will have a bullish impact on Bitcoin.

Bakkt in 4 days 👀
Now it all makes sense 🚀#Bitcoin $BTC pic.twitter.com/gwcAfN3nLl
— Mia Tam (@_blockandchain_) September 19, 2019

Crypto Community on the Bakkt Launch
Other twitter community members are reacting to the Bakkt’s launch in a number of ways. Many believe it may initiate a short bearish season in which bitcoin price may eventually fall considerably due to massive manipulation.
According to a twitter user,

Source: Twitter
However, a few others have given contradicting opinions clearly expressing the advantages of Bakkt’s launch to the crypto community.
Source: Twitter
Intercontinental Exchange (ICE), the creator of New York Stock Exchange (NYSE) announced the launch of Bakkt, a bitcoin futures exchange and digital assets platform. The launch which is scheduled for September 23, is expected to bring tangible institutional investment into the crypto space.
This initiative, in its entirety, is quite interesting, as it represents competition for existing cryptocurrency trading infrastructure – Bakkt is simultaneously competing in the futures space (against CME in particular), and against spot crypto exchanges. It is likely that Bakkt will not just be a game-changer for the crypto market, but the entire investment space as it will help Bitcoin-based products gain a position among mainstream investment offerings.
The post Fundstrat’s Thomas Lee “Very Positive” About Bakkt’s Impact; 3 Days to Launch! appeared first on Coingape.
Source: CoinGape

As Bitcoin Price Breaks Its Crucial Support of $10K, Where Could It Go Now?

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As Bitcoin Price Breaks Its Crucial Support of $10K, Where Could It Go Now?
Bitcoin price surprises the market by slipping below $10K levels on August 28. Crytpo analysts trace Bitcoin whales moving massive BTC tokens ahead this week.
As Bitcoin Price Breaks Its Crucial Support of $10K, Where Could It Go Now?

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Source: CoinSpeaker

Bakkt Is to Launch Bitcoin Futures Next Month

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Bakkt Is to Launch Bitcoin Futures Next Month
Bakkt, first unveiled last August, has been working on regulatory approvals to begin offering the product over the past year. It is said to launch its services on September 23.
Bakkt Is to Launch Bitcoin Futures Next Month

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Source: CoinSpeaker

ICE CEO Reveals Bakkt Bitcoin Futures Launch is Just Around the Corner

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ICE CEO Reveals Bakkt Bitcoin Futures Launch is Just Around the Corner
According to the CEO of ICE, Bakkt’s parent company, the launch of the firm’s physically settled Bitcoin futures, is on the horizon. The CEO has said that they are waiting for NYFDS approval.
ICE CEO Reveals Bakkt Bitcoin Futures Launch is Just Around the Corner

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Source: CoinSpeaker

Bitcoin Price Drops 5% Even After Bakkt Launched Its Much-Anticipated Futures Trading Platform

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Bitcoin Price Drops 5% Even After Bakkt Launched Its Much-Anticipated Futures Trading Platform
Recently Bitcoin price dropped by a little more than -5%. This price movement is rather unexpected since the community anticipated the opposite after Bakkt announced their test launch of its new Bitcoin futures trading platform.
Bitcoin Price Drops 5% Even After Bakkt Launched Its Much-Anticipated Futures Trading Platform

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Source: CoinSpeaker

Fidelity Digital Assets Applied for a Trust License in NY

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Fidelity Digital Assets Applied for a Trust License in NY
Allegedly, Fidelity’s cryptocurrency investment arm filed an application with the New York Department of Financial Service (NYFDS) and if approved the institutional brokerage will be allowed to offer crypto-custodial services in the state.
Fidelity Digital Assets Applied for a Trust License in NY

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Source: CoinSpeaker

ErisX goes all hands on deck to launch a Bitcoin Futures market

ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market. ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims […]
The post ErisX goes all hands on deck to launch a Bitcoin Futures market appeared first on AMBCrypto.
Source: AMB Crypto

CFTC Lets LedgerX Settle Futures in Actual Bitcoin

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CFTC Lets LedgerX Settle Futures in Actual Bitcoin
The Commodity Futures Trading Commission (CFTC) cleared Bitcoin derivatives provider LedgerX to offer physically settled BTC futures contracts to institutional and retail customers.
CFTC Lets LedgerX Settle Futures in Actual Bitcoin

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Source: CoinSpeaker

Belated ICE-backed Bakkt Bitcoin Futures Beta-Testing Launches in Less than a Month

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Belated ICE-backed Bakkt Bitcoin Futures Beta-Testing Launches in Less than a Month
As ICE Futures Exchange opens its Bitcoin Futures interest, CME concurrently soars in what appears to be a four day all-time high in a row.
Belated ICE-backed Bakkt Bitcoin Futures Beta-Testing Launches in Less than a Month

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Source: CoinSpeaker