Cryptocurrency markets have seen fast, global growth in both scale and sophistication. That growth has largely occurred outside regulated markets, as is typical of many nascent asset classes. Now, we’re bringing transparency and trust to digital asset markets through Bakkt - a company we created to broaden access to digital assets for institutions, merchants and consumers.
To achieve this, Bakkt offers trusted, regulated infrastructure, so market participants can access secure custody and trade on ICE’s regulated exchanges. ICE’s experience in technology, market access and compliance is being applied to bring the same benefits we’ve delivered across global asset classes: transparency, trust, and liquidity.
The launch of Bakkt® Bitcoin Futures contracts on ICE Futures U.S. represents the first futures contracts with CFTC-regulated on-exchange price discovery and physical delivery. This means that for the first time, price discovery and settlement will be set without reference to unregulated spot markets.
On December 9, Bakkt launched the first regulated options contract for bitcoin futures, traded at ICE Futures U.S. A cash settled futures contract is also available for trading at ICE Futures Singapore. Referencing the price of the physically delivered Bakkt® Bitcoin (USD) Monthly Futures, the cash settled contract offers a cost-efficient tool for hedging or gaining exposure to bitcoin without the need for physical delivery or reliance on the unregulated bitcoin spot market.
To complement futures, the Bakkt Warehouse is a cryptocurrency custody solution, using the same institutional standards, operational controls and security relied on by ICE’s regulated exchanges globally.
The warehouse serves as a qualified custodian, while enabling physical delivery and reducing unique security risks related to bitcoin.
A physically settled monthly futures contract for bitcoin held in the Bakkt Warehouse.
Option contract based on the physically delivered Bakkt Bitcoin® (USD) Monthly Futures contract.
A cash settled futures contract that references the price of the physically delivered Bakkt® Bitcoin (USD) Monthly Futures.