The US Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), has announced that on 12th December it will launch Bitcoin Futures on its cryptocurrency trading platform Bakkt.
“The Bakkt Bitcoin (USD), Daily Futures Contract, is a physically-settled daily futures contract for Bitcoin held in Bakkt, ICE’s Digital Asset Warehouse, and will be cleared by ICE Clear US, Inc.,” says the firm in a document. “Each futures contract calls for delivery of one Bitcoin held in the Bakkt Digital Asset Warehouse and will trade in US dollar terms. One daily contract will be listed for trading each Exchange Business Day.”
Cleared and guaranteed by ICE
The company also says all BTC trades will be cleared and guaranteed by its ICE Clearing US branch, the central counterparty for all its cleared forex futures trades.
“Trades will result in physically delivered Bitcoin in ICE’s regulated Digital Asset Warehouse. Market participants are eligible to transact with any other market participants. ICE physically delivered Bitcoin futures offer trading and hedging opportunities,” it concludes.
In another statement, ICE suggests the start of Bitcoin Futures trading could positively impact the cryptocurrency market as it did last year when the Chicago Board Options Exchange (CBOE) launched its first Bitcoin Future.
ICE announced the launch of Bakkt earlier this year as part of its plans to develop a publicly-open and regulated, global ecosystem for cryptocurrencies.