Intercontinental Exchange’s Bitcoin futures platform Bakkt has clarified its choice of BTC to begin its initial futures contracts, arguing the first and foremost cryptocurrency’s recognition as a commodity and derivatives regulation by the CFTC make it a suitable candidate.
Intercontinental Exchange (ICE) — a Fortune 500 company based in Atlanta, Georgia that owns and operates 12 different regulated exchanges and marketplaces, including the New York Stock Exchange and Bakkt — recently took the opportunity to clarify its choice, in an attempt to break the silence between now and the physically-backed BTC futures Jan 24 release.
According to a recent tweet by Bakkt, Bitcoin was chosen as its first futures contract because of its large market capitalization — currently sitting at $78 million, or just over half of the total cryptocurrency market supply — and that its recognition as a commodity and regulated derivatives were key considerations in its choice.
We've been asked why we're starting with bitcoin. Here's why:
Bitcoin today accounts for over half of total crypto market capitalization and has been deemed to be a commodity, and its derivatives are regulated in the US by the CFTC… (1/2)
— Bakkt (@Bakkt) November 21, 2018
The clarification comes just a day after Bakkt announced its Bitcoin Futures platform would be delayed from its initial date of Dec 13, 2018, until Jan19, 2019, due to needing more time to prepare the platform for a smooth trading experience upon launch.
What are your thoughts on Bakkt’s physically-backed Bitcoin futures contracts? Will they help the market recover from what is widely considered one of the worst crashes in Bitcoin’s history, or will they make matters worse? Let us know your thoughts in the comments below!