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Bakkt Launches Two New Financial Products

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Updated by Adam James
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Bakkt has just released two new financial products: Bitcoin monthly options and Bitcoin cash-settled futures.
Bakkt is expanding its Bitcoin product ecosystem with two new financial products. Starting with Bitcoin-backed monthly futures, the exchange is now expanding. One of the new financial products is Bitcoin (USD) Monthly Options. It is the first CFTC-regulated option on a futures contract for Bitcoin. Its benchmark will be the exchange’s original Bakkt Bitcoin Monthly Futures. According to the group’s latest blog post, Bakkt Bitcoin Options will offer “important hedging, trading and income-generating opportunities to market participants around the world.” Secondly, the exchange is releasing Bitcoin cash-settled futures, which will be available on ICE Futures Singapore, an exchange based in Singapore open to investors in Asia. It provides an alternative to those who cannot participate in Bakkt’s physically-delivered Bitcoin futures. Together, these two new financial products are building Bakkt’s momentum as it goes into 2020. The exchange says that new trading products, expanded custody services, a consumer payments app, and more are planned for next year. Bakkt Bitcoin Future However, not everyone is happy about Bakkt’s expansion and growth. Recently, as BeInCrypto reported, notable YouTuber Chico Crypto said that the company was effectively Wall Street’s attack on Bitcoin. Moreover, BeInCrypto recently covered concerns regarding Bakkt’s reserves. Although its Bitcoin futures markets are supposed to be physically-backed by actual Bitcoin, a little digging reveals that only 63% of its futures markets are BTC backed. This runs counter to Bakkt’s claim before launch when they claimed that their Bitcoin markets would not create a “paper claim” on a real asset. Recently, Bakkt’s CEO was appointed as a Senator in the U.S. state of Georgia. The result has been institutional optimism over the company’s future, but the cryptocurrency community at large remains mostly neutral towards the exchange’s future prospects. Given that the CME Futures exchange has been widely blamed for Bitcoin’s 2018 fall, Bakkt will have to build up its reputation further to convince the naysayers.
Images are courtesy of Shutterstock.
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