BAKKT PARENT FIRM ICE BRINGS BITCOIN ‘CASH-SETTLED’ FUTURES TO SINGAPORE
Bitcoin’s ‘cash-settled’ futures exchange is returning to Singapore. ICE, the operator behind Bakkt’s BTC futures firm, has chosen to supply this new product, which can be traded on ICE Futures Singapore.
BITCOIN CASH SETTLED FUTURES APPEALS TO INSTITUTIONAL CLIENTS
Bakkt has achieved exponential growth with physical delivery futures, however, the international growth chose the cash-settled route. The move was declared just as the Singapore cash Authority declared its readiness to manage crypto trading, opening a search period till December 20.
For the Singapore market, the futures can derive data from the Bakkt physical delivery market.
“Our new cash-settled futures contract can supply investors in Asia and around the world a convenient, capital-efficient way to gain or hedge exposure in bitcoin markets,” said Lucas Schmeddes, President & COO of ICE Futures and Clear Singapore.
"Building off the success of our deliverable futures contract, the cash-settled futures will leverage ICE’s regulated, globally-accessible market to offer a safe, secure and compliant environment for the trading of bitcoin."
After a debate and approval, the ICE Singapore can list the futures on December 9. The scheduled day arrives simply every day when Bakkt launches options on futures for the U.S. market.
BAKKT FUTURES SEE CONSTANT DEMAND GROWTH
Demand for Bakkt futures has grown slowly over the past month, showing volatile daily interest in terms of contracts and physical BTC listed. For Bakkt, daily activity is steadily higher than 1,000 BTC.
Futures markets are seen because of the new source of liquidity for Bitcoin price discovery. Cash-settled futures avoid the necessity to carry BTC, although Bakkt Custody offers that choice. However, a completely approved commodity exchange avoids the pitfalls of using BTC and probably facing issues with the origin of coins.
Institutional and international interest in Bitcoin trades has mature over the past years, despite slower retail demand and diminished general popularity. BTC remains volatile and has not recovered its Dec 2017 peak, however, institutional interest has not abated.
Bitcoin futures will facilitate offset BTC’s still comparatively high volatility. Bakkt marked record volumes even as BTC came back to volatility in October, and within the past four weeks swayed between lows of $7,400 and highs on top of $10,000.