Reports say these Bitcoin futures contracts will be traded in Bitcoin-US Dollar pair. Its trading will take place in the electronic trading platform of Intercontinental Exchange. It needs special mention that Bakkt crypto platform hasn’t yet received full regulatory approval.
What are the New Information Shared by Bakkt about Bitcoin Futures Contracts?
The Intercontinental Exchange has shared a list of details about the long awaited Bitcoin Futures Contract, which the buyer can take physical delivery. Reports say the venture will start out by offering 1-day, physically delivered Bitcoin futures contracts. The market specifications released today say:
- The concerned contracts will come with the screen product name of “
BakktBTC (USD) Daily Future”.
- The size of each Bitcoin Futures contract will be 1 BTC.
- The product prices will be quoted in terms of US Dollars, true to two decimal places.
- Per contract price fluctuation will be US$2.50. This means, in case of block trades (which is generally 10 BTC or more) the minimum price fluctuation will come down to 1c per Bitcoin.
- On daily prices, there will be no upper limit.
- On each side of a trade, charged fees will be at 50c (which incorporates exchange as well as clearing).
- On any specific contract date, position limit is applicable. It stands at 100,000 lots.
Bakktplatform will be available for trading from 20:00 to 18:00 with 19:55 as pre-opening time.
- Daily settlements of Bitcoin Futures will take place between 16:58 and 17:00 every day.
- The times mentioned in the previous points are in Eastern Prevailing Time.
BakktWarehouse (a regulated custody solution) will be used for overseeing the delivery of the futures contracts to take place.
Publishing of the final product details by Bakkt platform shows that they are all ready to get started with the Bitcoin Futures contracts and are just waiting for CFTC’s final nod of starting the business.
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