The wait is over as the platform for physically delivered Bitcoin futures trading is live on the ICE backed Bakkt Exchange. The platform was one of the hot topics for the crypto community from the past 1 month since it is first of its kind platform that is the United States regulated.
After spending a whole year in promotions and explanations, and delays in the launching due to regulatory concerns, Bakkt has finally launched the platform. The announcement for the confirmation of the launch was made on 26th August when Bakkt secured the approval from the US Commodity Futures Trading Commission(CFTC).
Bakkt is the first in the business to offer physically-settled Bitcoin futures; however, Chicago Mercantile Exchange and the Chicago Board Options Exchange offer Bitcoin futures as well, but they are settled with cash. This means that the customer gets real Bitcoins once the equivalent amount of cash is given at the end of the contract.
Bakkt exchange and effects on Cryptocurrency
The new platform for Bitcoin futures trading will have a positive impact on the cryptocurrency industry. Speculations have been surrounding its launch as people believe that this new product will change the way institutional investors are involved in Bitcoin and other cryptos.
The case is different as, despite its launch, the BTC price is still trading below $10,000 as it tests the support levels of $9,600. No significant impact can be seen on Bitcoin after the launch as it still continues to trade close to the $10,000 levels.