ICE Singapore to List Cash-Settled Bitcoin (BTC) Futures in December
The futures will be regulated by the Monetary Authority of Singapore, and offer trading based on the Bakkt physical delivery market.
ICE Singapore will start trading and settling Bitcoin (BTC) futures, provided by the Intercontinental Exchange, Inc. The new offering will be regulated by the Monetary Authority of Singapore, an entity overseeing crypto exchanges. The news was immediately greeted by the crypto community as an encouraging expansion and BTC acceptance.
The ICE, the platform operator behind the Bakkt futures market, has answered the recent demand for crypto trading in Singapore. But the product will be offered through a licensed derivatives exchange.
The new monthly futures markets will be cash-settled, but derive their information for pricing from the Bakkt physical delivery market. Futures have expanded as a way to bet on BTC price movements, and invite higher liquidity. The leading CME futures are nearly two years old, and have gone through one of the longest BTC bear markets.
Currently, the MAS has opened an exploration period for offering cryptocurrency trading opportunities. The country uses a licensing regime for purely crypto exchanges, but having cash-settled futures opens the door to mainstream investors.
The new futures market will open this December 9, a day after Bakkt launches its new derivative product, options on futures.
The news of the launch still arrived when BTC spot prices were pressured, sinking well below $7,150 after a week of rapid sliding. But even with volatility, the futures markets start attracting more skillful traders, as evidenced by growing Bakkt volumes.
The presence of markets with official licensing means the price setting of BTC is now more distributed. Futures markets were seen as potentially altering the trajectory of BTC. After the September 23 launch of Bakkt physical delivery futures, the BTC market suddenly increased its volatility, crashing from the $10,000 level. Now, the coin enters another short-term bearish period, and is seen as sliding at least until the spring of 2020.