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On Tuesday, Nov 20, the Intercontinental Exchange (ICE) announced a new date to start offering its latest futures contract — Bakkt(USD) Daily Future — on the New York Stock Exchange (NYSE).
Instead of Dec 13, 2018, contracts will now be available for trade on Jan 24, 2019.
The announcement comes via Bakkt, the company responsible for warehousing the Bitcoin (BTC) in this physically-settled Futures contracts are literally agreements to buy or sell an asset on a future date and for a fixed price.... More contract. According to the company, it needs more time to ensure customer onboarding goes smoothly and they are able to trade from day one.
CEO Kelly Loeffler shares a launch date update and answers other frequently asked questions https://t.co/5JuR4IOmEA
— Bakkt (@Bakkt) November 20, 2018
This development coincides with the US Securities and Exchange Commission’s (SEC) delayed decision on the VanEck/SolidX proposal, which will factor into the Bitcoin futures market in its consideration to allow the first Bitcoin ETF to commence operations.
Unlike the VanEck/SolidX proposal, Bakkt is under the regulation of the U.S. Commodity Futures Trading Commission (CFTC). Combined with the commoditization of Bitcoin, the path is clear to start out the operations of this new Bitcoin futures contract.
The regulators still need to approve its operations, but the expectation is that approval is guaranteed. This is further supported by the significant amount of precedent as seen in the currently-operational, fully regulated “cash-settled” Bitcoin futures markets.
This delay has caused a significant outburst among the cryptocurrency community, with many people accusing this move as a means to an end — specifically, an attempt to buy as much BTC as it can before going through with operations.
Bakkt, however, ensures that it is pushing the timeline forward as a means to provide the best experience for everyone involved.
The company’s CEO, Kelly Loeffler, explained that, as Bakkt is creating a new asset class, old processes are not enough. The risks and ways to mitigate them are different, and all of this requires testing.
What do you think about this delay? Let us know in the comments below!
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