The pending crypto and Bitcoin platform Bakkt of the Intercontinental Exchange has some plans to start testing its two futures contracts on the 22nd of July, 2019.
Bakkt initiating user acceptance testing for its product
In one blog post which connected the launch of Bakkt to the Apollo 11 moon landing, the chief operating officer named Adam White wrote that the platform is going to initiate user acceptance testing for its first product, the physically-delivered Bitcoin or BTC futures, which is going to be listed, as well as trade by its parent company.
During May, they have also announced that it is going to start testing it in July, although it didn’t provide the specific date at that period. We saw several delays over regulatory compliance since the original announcement in August of last year, is going to offer futures as the first in a series of offerings, but the full details are still unclear.
Additional to the date, ICE also provided some new details for the monthly contract of Bakkt, and even updated the specifications for its daily deal.
Both of the contracts are going to see a minimum price fluctuation of $2.50 per BTC. Trades can also be executed at $0.01 per BTC, with a listing cycle which may last for 12 months or 70 consecutive eligible contracts dates.
The potential launch dates of last year
The final settlement for both contracts is going to be at the Bakkt Warehouse. Last year, ICE also announced that it is going to launch the physically-settled BTC futures contracts. Unlike the cash-settled ones, like what CME Group is offering, the customers will receive an actual BTC on the expiration of the contract, and not the fiat equivalent to the price of BTC.
On Thursday, White actually wrote that the mission of Bakkt is to support the development of the trusted infrastructure for the security transacting in the new market for some digital assets.
The exchange has initially announced the potential launch dates in 2018, and January 2019, although both have been delayed because of the lack of regulatory approvals. The delay actually appears to stem in part from the plan of Bakkt to warehouse its BTC, and clear trades through the ICE clearinghouse.
The final date is still not announced
They haven’t still announced the final launch date. During May, the company has revealed that it has been self-certifying its futures contracts, which actually included a daily contract which has been previously announced and a monthly contract which has not been previously published.
White said that this was not a small step at all. According to him, the launch is going to usher in a new standard for accessing crypto markets.
He also added that in comparison to other markets, the institutional participation in the crypto industry remains constrained because of the limitations such as regulatory certainty and market infrastructure. This actually results in lower liquidity, trading volume, and price transparency than more of the established markets such as the Brent Crude futures contract of Ice, which earned global trust in setting the value of crude oil around the globe.