Bakkt, the new crypto exchange venture backed by Intercontinental Exchange, the parent of the NYSE, confirmed today that its first investment product will come in the form of physically delivered Bitcoin (BTC) futures contracts.
“Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP and EUR,” Bakkt wrote on Twitter.
Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP and EUR. For example, buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.
— Bakkt (@Bakkt) September 25, 2018
As previously mentioned, Bakkt will kick-off with a 1-day physically delivered Bitcoin contract along with physical warehousing in November 2018.
This news comes after Bakkt’s announcement last month that clarified it would not allow Bitcoin margin trading on its platform but instead will assure that each transaction is fully collateralized. This means that the exchange’s daily Bitcoin contract will not be able to be traded on margin, using leverage, or serve “to create a paper claim on a real asset.”
Despite the ongoing news of institutional adoption, Bitcoin has largely traded sideways and is currently valued at around $6,418. BTC currently makes up 55.8% of the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.
More: Bakkt Twitter Post
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.