Bakkt Will Launch Bitcoin Options Contract Futures On December 9, 2019
On December 9, Bakkt will launch the first regulated options contract for bitcoin futures. Bakkt’s committed to bringing trust and utility to digital assets and the options contract is an example of the many products they’re developing for regulated markets. The Bakkt Bitcoin Options contract will be based on the benchmark Bakkt Monthly Bitcoin Futures contract and represents another important step in developing this asset class for institutional investors, their customers and investors.
The new contract is based on customer feedback and is designed to hedge or gain bitcoin exposure, generate income, and offer cost and capital efficiencies. ICE Futures U.S. has self-certified the contract with the CFTC and Bakkt will leverage the benchmark futures prices and institutional grade custody to meet the needs for a regulated options contract.
Key features of the Bakkt Bitcoin Options contract include:
Capital efficiency: Margined contracts, and cross-margining with the underlying futures contract
Cash or physical settlement: Options will settle into Bakkt’s monthly bitcoin futures contract with time to roll, close out positions or take physical delivery
European style option: This contract design avoids early exercise and reduces operational burdens
Attractive fees: $1.25 per options contract (1 contract = 1 bitcoin) starting in January 2020, following the fee waiver in December 2019
Broad distribution and liquidity: ICE Futures U.S. markets are accessible globally and have dedicated market makers to support liquidity
Instant Messaging: Collaborate with other market participants using ICE Chat, which can be tailored to support your compliance requirements
Block trades: Access more trading opportunities as block trades by leveraging ICE Block
Options analytics: Use ICE Option Analytics to support options valuation, analysis and risk management
Since launching the Bakkt Bitcoin Futures just one month ago, Bakkt has been working closely with market participants to build liquidity, create market transparency and build open interest. Notably, they have a record 590 contracts of Bakkt Bitcoin Monthly Futures change hands yesterday, October 23. Bakkt also completed a milestone with seamless physical deliveries in both daily and monthly bitcoin futures contracts.
Bakkt Bitcoin Futures have tight bid-ask spreads throughout U.S., European and Asian trading hours, and Bakkt continues to onboard new institutional and retail customers. If you’re interested in opening a Bakkt Warehouse account or trading the Bakkt Bitcoin Futures and Options contracts, please email them at email@example.com for more information.
Bakkt Will Launch Bitcoin Options Contract Futures on December 9, 2019 – Refer: https://medium.com/bakkt-blog