Bakkt Exchange Sets Date for Testing Bitcoin (BTC) Futures
On July 22, the Bakkt exchange will test user acceptance for their long-awaited Bitcoin futures.
After months of delays, the Bakkt exchange will start testing the acceptance of Bitcoin (BTC) futures with physical delivery on July 22. In a blog posting, Adam White, COO at Bakkt, shared that the ICE market operator called the exchange a “moonshot bet”.
As a form of due diligence, the Bitcoin futures will go through a testing period, by trading and settling on the ICE Futures US exchange.
“On July 22, two days after Apollo 11’s 50th anniversary, Bakkt will initiate user acceptance testing for its bitcoin futures listed and traded at ICE Futures U.S. and cleared at ICE Clear US,” White explained.
Bakkt has been preparing for the launch of physical delivery futures by setting up a custody infrastructure, aiming for secure storage for anyone not familiar with wallet technology or not confident enough to use it on their own.
The Bakkt exchange is also just building the infrastructure for a market that is attracting low institutional participation due to uncertainties. The launch of Bakkt aims to afford regulatory compliance, and generate enough trust, adoption, and liquidity to provide a reliable market.
BTC market prices are still extremely volatile, experiencing significant changes within just a day. The Bakkt futures will offer both daily and monthly contracts, to bet on short and long-term trends.
The news arrived at a time when BTC prices are inching back up again above $8,000. BTC traded at $8,222.43 as of 7:00 UTC on Friday, recovering from a recent crash under $8,000. One of the biggest problems for mainstream adoption is the fact that BTC trading in fiat is comparatively small, and price discovery happens on markets fueled by Tether (USDT), a stablecoin that boosted liquidity in the past year.
The Bakkt exchange has been delayed multiple times, always requiring additional regulatory explanations. The Bakkt team has worked on clarifying issues related to BTC trading, involving liquidity, the potential for price manipulation, as well as the issues surrounding anonymity and money-laundering.