Under the US Intercontinental Exchange Group (ICE), and escorted by a number of well-known investment institutions, the cryptocurrency futures exchange Bakkt officially started trading yesterday morning. According to ICE data, 71 Bitcoin futures contracts in the first 24 hours following its launch on Sept. 22 and the transaction price ranged from $9,972.5 to $10,115.
Bakkt has been organizing since the fourth quarter of last year and has been released after two extensions. The exchange started trading at 8AM yesterday, and the first transaction occurred at 8:02AM. Bakkt is different from current competitors in the market, such as the Chicago Board of Trade (CME). Bakkt delivers futures contracts in kind, that is, bitcoin is used to settle futures contracts, while CME is delivered in cash.
Currently, Bakkt offers two types of bitcoin futures contracts, one-day and one-month, for investors to buy and sell. CoinDesk quoted Lanre Sarumirumi, chief executive of LevelTradingField, a cryptocurrency exchange, “The dailies make their offering like the cash market, but with the ability to short. That’s huge.” However, cryptocurrency investor Ari Paul said on personal Twitter that the delivery of futures contracts in kind would take a long time for the market to accept.
Bakkt is highly anticipated by the market. In addition to ICE endorsements, it is also backed by Hong Kong’s richest man Li Ka-Shing’s Victoria Harbour Investment, Microsoft’s venture capital firm M12, and Boston Consulting Group (BCG).