Bakkt announced today (Monday) that they expect the Bitcoin futures exchange to launch physically settled bitcoin futures products as soon as July this year.
Bakkt CEO Kelly Loeffler posted the update through a Medium blog post and notified readers that they have been working closely with the U.S. Commodity Futures Trading Commission (CFTC) in order to launch a fully compliant and tested framework for the futures contracts.
We’ve worked closely with the CFTC to develop contracts that both meet our customers’ needs for trading, transparency, and market certainty, and are also compliant with Federal regulations.
Bakkt in collaboration with ICE Futures U.S. and ICE Clear US will self-certify its bitcoin futures products. This means the CFTC will assess whether or not the proposals violate any laws & regulations. If no issues are highlighted within a 10-day deadline, the Bakkt products will move forward.
Bakkt will contribute $35 million into the clearinghouse risk waterfall. This puts our own “skin in the game” and aligns our interests for market integrity and safety with market participants
The interest in the Bakkt offering comes through its method of delivery. Unlike CME and Cboe’s products, Bakkt will deliver actual Bitcoin to its users rather than the equivalent in cash on contract expiration.
According to the post, Bakkt will be spending the next couple of weeks working with their customers to prepare for user acceptance testing (UAT) for their futures and custody trading options. The UAT is being used to allow customers to acquaint themselves with the custody model prior to launch.
Bakkt will list 2 futures contracts which include:
1) ‘A daily settlement bitcoin future, which will enable customers to transact in a same-day market.’
2) ‘A monthly bitcoin futures contract will enable trading in the front month and across the forward pricing curve.’
In closing the announcement, Loeffler emphasised their commitment to their regulatory stance by on-boarding Marc D’Annunzio as their new General Counsel.
Closing out, I’ll note that our team continues to expand at Bakkt. We recently welcomed Marc D’Annunzio onboard as our General Counsel.
‘Marc’s breadth and depth of experience, which includes securities law, M&A, and international regulatory matters in the payments industry, is truly impressive. He will lead our management of legal, regulatory, compliance and governance matters at the company.’
Additional press releases and or blog posts are expected from Loeffler over the next few weeks and prior to the anticipated launch of July.