Will Bakkt's Bitcoin Options Be as Influential as Bitcoin Futures?
Many have seen Bakkt's Bitcoin Daily Futures as Wall Street's first venture into the cryptocurrency market. While Bakkt's Bitcoin Daily Futures have been blamed for causing Bitcoin to tumble from its yearly high, some have associated it with Bitcoin surging. Tomorrow Bakkt are launching a new Bitcoin related product known as Bakkt Bitcoin Options and cash settled Monthly Futures.
Bakkt Bitcoin Options & Cash Settled Futures - Everything You Need to Know
Unlike Bakkt Bitcoin Daily Futures which was launched in New York in September, the new products will be a bit different. The new cash settled Monthly Bitcoin Futures and options will launch in Singapore tomorrow. Another key point of interest is that both the monthly futures and options are cash settled and do not require the delivery of Bitcoin to open a contract.
"Our new cash settled futures contract will offer investors in Asia and around the world a convenient, capital efficient way to gain or hedge exposure in bitcoin markets," said Lucas Schmeddes, President & COO of ICE Futures and Clear Singapore. "Building off the success of our deliverable futures contract, the cash settled futures will leverage ICE's regulated, globally-accessible market to offer a safe, secure and compliant environment for the trading of bitcoin."
The Cryptocurrency Community Reacts
The decision to have Bitcoin Monthly Futures and Options settled in cash has drawn criticism from the cryptocurrency community. Some have claimed that Bakkt's cash settled Monthly Futures and Options will be a tool for market manipulation.
Seeing that these markets will be cash settled could also mean that they will have minimal impact on the asset.
In addition to Bakkt, the CME & Bitfinex are also anticipated to launch Bitcoin options later this month.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado