Bitcoin Options and Cash Settled Futures Now Available on Bakkt

December 9, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

This Monday, the Bakkt cryptocurrency platform announced the launch of two new products tied to the bitcoin futures presented in September: options and futures contracts, which are settled in traditional currency.

In its blog, the company notes that it uses deliverable bitcoin futures as a price benchmark for other derivatives products, and mentions an example of Brent crude oil futures, which formed the basis of all kinds of swaps, options and other futures contracts.

“By starting with the physically delivered Bakkt Bitcoin (USD) Monthly Futures, we have a benchmark contract that provides the foundation for us to develop complementary products based on the needs of our customers,” the company writes.

Bakkt launches its options a month before the launch of a similar product on the Chicago Mercantile Exchange (CME). Also this Monday, OKEx cryptocurrency exchange announced the upcoming entry into the space of options trading.

Bakkt options will not be tied to the unregulated spot market for Bitcoin, but only to futures supervised by US federal regulators, the publication said.

Cash-settled futures were launched on the ICE Futures Singapore site, primarily to serve the needs of Asian investors. However, they can be traded by any Intercontinental Exchange client who owns Bakkt and the New York Stock Exchange account.

The company admits the possibility of further development of the product line tied to the main futures contract. The launch of the consumer payment application in collaboration with Starbucks, as well as the expansion of the custodial offer within the framework of the existing roadmap, should take place next year.