Bakkt, the physically settled Bitcoin futures contract platform that is set to be launched on January 24th pending regulatory approval is expected to gain the approval soon.
This is according to a report, Bakkt has been working closely with the Commodity Futures Trading Commission (CFTC) to ensure that its business plan is compliant with all the necessary provisions of the markets watchdog.
There are two Bitcoin futures products already in the market and both launched more than a year ago in December 2017. One is offered by the Chicago Board Options Exchange (CBOE) while the other is offered by the Chicago Mercantile Exchange (CME). The difference between these two products already on the market and Bakkt’s proposed futures is that Bakkt’s contract settlement will be done through cryptocurrency as opposed to fiat currency.
The Bakkt platform was initially scheduled for launch this December 2018 but got pushed till January 24th, 2019 to allow for more rigorous preparation and regulatory approval. Bakkt CEO Kelly Loeffler said at the time that,
“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.”
Bakkt is backed by the Intercontinental Exchange, the parent company to the New York Stock Exchange. Once the company receives the green light to list the Bitcoin futures, the public will be allowed a period of 30 days to comment on the matter. According to documents filed with the CFTC, Bakkt aims to provide custody of digital assets and price discovery for Bitcoin (initially) which will help curb fraud and price manipulation.
Several investors and crypto ‘bulls’ are banking on the launch of the Bakkt Bitcoin futures to spur a crypto bull run in early 2019 coupled with the expected approval of a Bitcoin Exchange Traded Fund.
Both of these products are pending regulatory approval and some well-known industry insiders are especially optimistic about the prospects of both these products getting approved.