ICE’s Bakkt announces its first crypto contracts will be physical Bitcoin futures

Intercontinental Exchange (ICE) announced that its Bakkt cryptocurrency exchange will launch its first crypto contract, which will take the form of physical bitcoin futures.

In a tweet made yesterday, ICE’s Bakkt, which operates the NYSE (New York Stock Exchange), revealed that its first cryptocurrency contract will be physical bitcoin futures, finally allowing institutional investors who have been waiting to put their money on physical bitcoin futures.

Announcement built on a previous confirmation

The announcement by Bakkt is built on a previous confirmation on August 2018, when ICE revealed that Bakkt would launch a federally regulated, physical bitcoin futures contract and warehouse on November 2018.

Although ICE did not give further details as to when the launch would take place, it confirmed that its use case will be conversion and trading of bitcoin versus fiat currency, addressing the evolving need for adoption in the digital asset marketplace.

What does the announcement mean for the bitcoin and cryptocurrency market?

Having a physical bitcoin futures contract is certainly great news for large institutional investors. As such, crypto experts believe that the opening of the Bakkt exchange will be a very bullish sign for the bitcoin price and the cryptocurrency market in general. This is largely because the futures contract will have to go through approval by the Commodity Futures Trading Commission (CFTC).

SEC’s decision on ETFs

The announcement by Bakkt will go a long way in bringing big money investors one step closer to adopting cryptocurrencies, as everyone eagerly waits for SEC’s decision on the appeal of bitcoin ETF approvals.

Bitcoin’s price

Following the announcement by Bakkt, bitcoin’s price has recorded a 1.19% growth to trade at £4921 ($6,478), as of 9:45 London time. It’s expected that the price of bitcoin will make significant gains once the official launch of the physically-backed bitcoin futures contract is launched.

About Bakkt

Bakkt is a firm formed through collaboration between ICE, Microsoft, BCG and several other companies. Its goal is to develop an open, global network for merchants, investors and consumers to buy, sell, spend, and store digital assets in a simple, secure, and efficient manner. Unlike most other crypto exchanges, Bakkt offers large institutional investors custodial services.

James

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James is a cryptocurrency enthusiast, an advocate for the development and exposure of blockchain technology, and believes in the use of digital assets for the good of the society. He has been writing about crypto since he first learnt about cryptocurrencies in 2010. Initially, he was attracted by the disruptive economic and social implications of virtual currencies and blockchain technology, and over the years he has dedicated himself to learn everything he can about the industry.

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