Working round the clock since 2018, raising hundreds of millions of dollars, fighting regulatory issues, and then intensely testing the platform, Bakkt Futures is now finally live.
We are certain the folks sitting in Atlanta (where Bakkt is based out of) are celebrating the launch of this platform. After all, this is possibly the most anticipated launch in the history of blockchain.
Because Bakkt attracts institutional investors. It connects consumers on a global scale. Makes payment easier. Offers secured storage of Bitcoin. A $125 million insurance. And literally takes Bitcoin to the next level.
The company tweeted the announcement of its Futures platform today and said the first execution of the Bitcoin was at 10,115 dollars.
The first Bakkt Bitcoin Futures trade was executed at 8:02pm ET at a price of $10,115
— Bakkt (@Bakkt) September 23, 2019
In order to celebrate this launch, we decided to answer some common questions — questions which remain unanswered, and mostly for the beginners to learn about the Bakkt Futures platform.
Here we go:
Question #1: What exactly is Bakkt Futures?
To understand this, you should understand Futures. In short, you agree to buy (or sell) Bitcoin at a locked-in price on a future date.
So if your price is right, you end up making a profit. If not, you pay the price. There is also an expiry date for this kind of “contract.”
Right now, Bakkt supports Bitcoin Futures only.
Question #2: What kind of Futures are available?
Two types: One is a daily settlement. Other is a monthly settlement. In daily settlements, traders can carry out trades on a same-day market. With monthly futures, contracts expire after a month.
Question #3: What is one important fact I should know about Bakkt?
The owners of the New York Stock Exchange (ICE) are backing Bakkt. It is important to know that ICE (Intercontinental Exchange) is a trusted institution in international finance.
ICE owns NYSE, ICE Data Services, SuperDerivatives, TMC Bonds, Singapore Mercantile Exchange (SME), and many more. ICE currently has over 5000 employees.
Question #4: How to access Bakkt Bitcoin Futures?
Both the types of bitcoin settlement (daily and monthly) are available under the ICE Futures US (IFUS). You can access them here:
- Daily Futures: https://www.theice.com/products/72035483
- Monthly Futures: https://www.theice.com/products/72035464
Question #5: What are the trading hours?
Trading hours are 8:00 p.m. EPT to 6:00 p.m. EPT, Sunday to Friday. Detailed trading time for New York, London, and Singapore here:
Question #6: Is there any fee involved when trading Futures?
Right now, Bakkt Futures is free until December 31st, 2019. So basically, zero fee. After that, a regular fee will be applied on each contract.
Question #7: What are the key benefits of Bakkt?
From regulatory approvals to security, wider adoption, reduce volatility for payments (cash-to-crypto), and better reporting (as Bakkt is backed by ICE), Bakkt Futures will also be physically settled (meaning buyers will receive bitcoin at expiration).
Plus, when it comes to regulation, both the Bakkt daily and monthly Futures meet the CFTC’s regulatory requirement. In terms of storing, customers’ bitcoin will be in the Bakkt Warehouse and it is regulated by the New York State Department of Financial Services (NYSDFS).
These are some of the common questions in and around Bakkt. We are delighted to take any questions you have and answer them here.