Regulator To Allow Bakkt Trading Bitcoin Futures Soon
The Bakkt crypto platform, created by the Intercontinental Exchange, may receive approval from the regulatory authority to start trading bitcoin futures by the end of October, The Block reports referring to its sources.
The last two months, since the announcement of the launch of bitcoin futures trading, Bakkt has been constantly negotiating with employees of the US Commodity Futures Trading Commission (CFTC), hoping to get permission. As a result, it can be obtained in the last week of October or at the very beginning of November.
Bitcoin futures allow betting on the future price of cryptocurrency or hedging positions. Trading in these financial instruments has not previously caused a stir on the exchanges, including the Chicago-based CME Group and Cboe Global Markets.
According to Bloomberg, only 9,000 contracts were traded daily on these trading platforms in the Q3 2018. This is not a figure that can be called a huge success, Craig Pirrong, professor of the University of Houston, stated to the agency.
However, the Bakkt product is different from CME and Cboe. In this case, traders will receive a payment in bitcoins, not in fiat money, when the contract ends.
It is assumed that DV Trading from Chicago will use the services of the Bakkt platform. Moreover, Goldman Sachs considers a similar opportunity.
Bakkt has already announced that traders will be able to purchase contracts from December 12, 2018.