Bakkt to tap into the fiat-settled Bitcoin futures market
|- Bakkt fiat-settled Bitcoin futures contract likely to come to the market before January 2020.
- Bakkt to directly compete with the Chicago-based CME Group’s cash-settled BTC futures contract.
Bakkt, the first company licensed to offer physically-settled Bitcoin futures contract, has announced that it will be diving into the cash-settled futures contracts. According to a report by CoinDesk, the product is to be released before the end of 2019. The fiat settled Bitcoin contract will be carried out via the Intercontinental Exchange’s Singapore-based clearinghouse.
The COO of Bakkt said: “We have the intention of offering a cash-settled contract as well.” Although the clearinghouse is based in Singapore, users from other countries, including the United States, will be able to access the service.
Following the launch in September, Bakkt Bitcoin futures were treated to a drab start. Besides, the launch was associated with a fall in Bitcoin price. The contract has been gaining traction, however, it cannot match the cash-settled contract by CME Group. Bakkt hopes to start directly competing with its Chicago-based rival supported by the new service.
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