The Bakkt Bitcoin futures are physically delivered, meaning that at the end of the futures contract, the payment is made in Bitcoin (BTC) instead of US dollars. XBTO stated in the press release that the first physical delivery under the existing laws had worked perfectly:Last week, we bought the first Bakkt Bitcoin Daily Futures contract and took the first physical delivery of a digital asset under existing commodity futures laws and regulations. This week, we executed the first block trade. We’re pleased to report that the launch was successful and can accommodate large trades.
Despite the slow start of Bakkt, the parent company ICE speaks of a further milestone that Bakkt has reached since its launch last week. Trabue Bland,
President of ICE Futures U.S. said in the press release:Since launching last week, the Bakkt Bitcoin Futures have achieved several milestones, including first physical delivery of bitcoin against a futures contract, and now the first block trade. Each of these achievements, on top of tight bid/offer spreads and a growing base of participants and clearing firms, are contributing to the first end-to-end regulated futures contract.
The launch of the Bakkt Bitcoin futures was more than a disappointment for many experts. ,Compared to the US dollar-based Bitcoin Futures introduced by the Chicago Mercantile Exchange (CME) in December 2017, the trading volume of the Bakkt Bitcoin Futures were disappointingly low.
Author : Jake Simmons