The parent company of the New York Stock Exchange or NYSE, known as the Intercontinental Exchange or ICE, confirmed that the first product of Bakkit will go live on the 12th of December, not in November as it was initially forecasted.
Bakkit was established earlier in 2018
Developers actually have some plans to open up regulated crypto exposure options to institutional investors, starting with physical Bitcoin futures.
Bakkit is actually a platform for trading, storing, as well as spending digital assets, which was established earlier in 2018 by global exchange operator ICE.
ICE adds that the reason for the delay is that its futures plans are still pending approval from the US regulators.
According to the document, ICE is going to list Bakkit Bitcoin (USD) Daily Features Contracts for trading on the 12th of December, 2018. The product is going to be physically-settled and cleared by ICE Clear U.S., Inc.
The notice further explained that each of the futures contracts calls for delivery of one Bitcoin held in the Bakkit Digital Asset Warehouse, and it is going to trade in U.S. dollar terms. One daily contract is going to be listed for trading each Exchange Business Day.
This announcement is also backed by a previous statement in September that the first contracts of the company are going to be physically delivered BTC futures contracts vs. fiat currencies, against U.S. dollars, pounds sterling, as well as euro.
Different reaction from the crypto industry
Despite the pushback, the company looks set to beat out the competition for fellow Wall Street heavyweights Goldman Sachs, Morgan Stanley, as well as Citigroup.
The furry of institutional investment announcements led to mixed reactions from the crypto industry.
Specifically, well-known figures took aim at non-custodial solutions for the investors that are not wishing to hold crypto assets directly, claiming that this is ultimately going to hinder adoption, as well as hurt the reputation of the industry.
This consideration seemed to form the impetus behind the decision of ICE to launch Bakkit with direct delivery of cryptocurrency from the outset in the form of physical futures contracts.
Bakkit does not support margin trading for the BTC contract
As it was earlier reported, Bakkit is not going to support margin trading for its BTC contract. With refraining from permitting for margin, leverage and cash settlement, the platform is going to help the market integrity better, as well as enable the trusted price formation which is said is the fundamental thing for advancing the promise of digital currencies.
Earlier in October, Mike Novogratz whose Galaxy Digital is going to be one of the first clients of a custody solution by Fidelity Investments, foresaw the effect of institutional entry hitting within the first two quarters of next year.
In December 2017, the Chicago Mercantile Exchange or CME and the Chicago Board Operations Exchange or CBOE launched Bitcoin futures. During the last summer, the Federal Reserve Bank of San Francisco wrote an Economic Letter. Stated that the rapid run-up and subsequent fail in the price after the initiation of futures does not seem to be a coincidence and it is also consistent with trading behavior which typically follows the introduction of futures markets for an asset.