Today Bakkt officially announced the launch of new futures contracts on the Singapore Stock Exchange.
We just launched two new products:
• Bakkt Bitcoin Monthly Options:
The first CFTC regulated option on futures contract for bitcoin
• Bakkt Bitcoin Cash Settled Futures:
A new cash settled futures contract available on ICE Futures Singaporehttps://t.co/7CqqZXRJKN
— Bakkt (@Bakkt) December 9, 2019
The announcement had already been made a couple of weeks ago and today the official launch took place.
The goal is to expand the Bakkt suite of products, starting with the Bakkt Bitcoin (USD) Monthly Futures physically delivered, and tradeable on the New York Stock Exchange, used as a reference point to develop new complementary products.
Bakkt reveals that the bitcoin futures continue to set new trading volume records and have thus decided to launch two new products based on the contract of reference.
The first is the Bakkt Bitcoin (USD) Monthly Options, the first regulated CFTC options on bitcoin futures contracts. This new contract is based on the Bakkt Bitcoin (USD) Monthly Futures and is settled two days before the expiry of the underlying.
The prices of futures contracts are traded entirely within a federally regulated market, without exposure to unregulated bitcoin spot markets.
These options offer opportunities for hedging, trading and speculation.
The second is the new bitcoin futures contract on the Singapore Stock Exchange, the Bakkt Bitcoin (USD) Cash Settled Futures.
The Singapore Stock Exchange is owned by the ICE, which also owns both Bakkt and the New York Stock Exchange, and in fact, the new contracts take advantage of the settlement price of the monthly benchmark of the original contracts, namely the Bakkt Bitcoin (USD) Monthly Futures.
The new Cash Settled Futures offer an alternative for those who are not able to negotiate contracts physically delivered in bitcoin.
The company also points out that in the future it may launch other products related to bitcoin or other cryptocurrencies, although to date there is still no information available.