Bakkt announced today the launch of the first regulated options contracts for bitcoin futures, scheduled for Dec. 9.
The bitcoin futures exchange announced the options contracts almost two weeks ago, to position itself ahead of the CME Group, who had announced the launch of bitcoin futures on their platform for Q1 2020.
According to Bakkt CEO Kelly Loeffler, the “ICE Futures U.S. has self-certified the contract with the CFTC” and the new bitcoin options contract will be based on the Bakkt Monthly Bitcoin Futures contract. Loeffler also stated that “the new contract is based on customer feedback and is designed to hedge or gain bitcoin exposure, generate income, and offer cost and capital efficiencies” and represents a big step towards “developing this asset class for institutional investors.”
Key features of the Bakkt Bitcoin Options contract include instant messaging with other market participants using ICE Chat, cash or physical settlement, a European style option meant to reduce operational burdens, capital efficiency, ICE Options Analytics, block trades leveraging ICE block, and more.
In the announcement, it was also reported that the Bakkt Bitcoin Futures platform, which launched a month ago, experienced a new record yesterday.