ICE’s Bakkt Delays Launch Date for Bitcoin Futures Contract

Published on 21 November 2018 by Cryptovest Staff

The ICE said that its Bakkt platform and Bitcoin (USD) Daily Futures Contract would be launched in January next year rather than in mid-December 2018.

New York Stock Exchange parent Intercontinental Exchange (ICE) announced on Tuesday its Bakkt platform would launch on January 24, 2019, instead of December 12, 2018, as previously expected. Developed by the eponymous subsidiary, Bakkt will provide a product called Bitcoin (USD) Daily Futures Contract, which will be settled physically.

Commenting on reasons behind the delay, Bakkt CEO Kelly Loeffler said in a blog post her team was continually working on the product and platform features. The company was focusing on regulatory approvals and customer onboarding. On the regulatory side, the team is in talks with the Commodity Futures Trading Commission (CFTC), which is currently reviewing the Bitcoin Daily Futures contract and the Bakkt Warehouse. The massive amount of work and the complex interaction between the Bakkt teams have caused the launch date to be delayed by about a month.

Loeffler also responded to several frequently asked questions about the platform in general. She said that Bitcoin was the number one choice for a futures contract given its weight in the cryptocurrency market and its designation as a commodity by the CFTC. The CEO hinted that more digital currencies might be added in the future as the market evolves.

The Bakkt platform is a big deal for the crypto space since it suggests increased acceptance on Wall Street. The launch of this ICE-backed product would have provided much-needed support at a time when Bitcoin and the crypto ecosystem as a whole are going through what may be the most difficult period in their history.

When the product is rolled out, US investors will have the unique chance to trade physically-settled Bitcoin futures on a major exchange. The future contracts on Chicago-based exchanges CME and CBOE are cash-settled, which means no real Bitcoins are moving at the expiry date.