On July 23, according to an official tweet of Bakkt the much-awaited Bitcoin (BTC) futures platform from the Intercontinental Exchange (ICE), has begun testing the delivery of Bitcoin futures.
The new Bitcoin offering involves two futures contracts; daily future contract, which will enable customers to transact in a same-day market, and a monthly bitcoin futures contract. Further, the contracts will be margined by ICE, including the collection of initial margin security and variation margin to handle risk.
According to the platform, during the testing phase, each contract on the Bakkt’s platform will consist of one bitcoin with a minimum tick size for trading set at $2.50 per bitcoin.
Also, if Bakkt met with great popularity, it could provide a huge benefit to the developing markets.
Sam Doctor, a strategist at Fundstrat Global Advisors, recently spoke about the platform in a recent tweet. Sam believes it could be a huge catalyst for the crypto markets in the near future.
He further claimed :
“There appears to be a critical mass of adopters ready to come on board on Day 1 of the Bakkt launch. With the sales team gaining traction among brokers, market makers, prop trading desks and liquidity providers.”
On the other hand, few analysts believe Bakkt might bring some change in Bitcoin’s price action and could contribute to some of the volatility in the coming future.
Bakkt is a bitcoin-based cryptocurrency retail payment platform developed by ICE. The main aim is to provide users and financial institutions to seamlessly buy, sell, store and spend digital assets including cryptocurrency.
About Bitcoin Futures
Bitcoin futures are futures contracts that speculate on the price of Bitcoin without participants actually having to own Bitcoin.