Bakkt to Launch First US Regulated Bitcoin Options Futures
Crypto derivatives platform Bakkt this Thursday set a launch date for options contracts on its deliverable bitcoin futures. First regulated bitcoin futures options to hit the market on December 9.
According to Bakkt CEO Kelly Loeffler, the decision to launch the new product was based on “customer feedback and aimed at hedging or gaining access to bitcoin, generating revenue and increasing efficiency in a cost and capital context.”.
“Bakkt’s Bitcoin Futures Options are another important step towards the development of this asset class for institutional investors, as well as their clients and investors,” she added..
When working with a futures, both parties are obliged to fulfill the terms of the contract, however, the option gives its buyer the right, but not the obligation, to buy or sell the asset at a predetermined price at a certain point in the future. In this case, the seller of the option cannot refuse to fulfill the terms of the contract. He compensates for additional risks with a premium that the buyer transfers to him when concluding a contract.
According to Loeffler, ICE Futures US has taken self-certification of the new instrument to market it in accordance with the Commodity Futures Trading Fees USA (CFTC).
“We are committed to ensuring the trust and practicality of digital assets, and option contracts are an example of one of the many products we develop for regulated markets,” CEO Bakkt said..
Unlike Bakkt bitcoin futures, option contracts will allow platform clients to receive settlements in traditional currency, which does not exclude the possibility of paying out the cryptocurrency itself.
Loeffler also mentioned that on Wednesday Bakkt set a new record for monthly trading volume in Bitcoin futures of about $ 4.8 million..
Earlier, the intention to launch bitcoin options was announced by the Chicago Mercantile Exchange (CME).
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