The Intercontinental Exchange (ICE)-owned Bakkt platform, has officially announced that on December 9, it will launch the very first regulated options contracts for Bitcoin futures. According to the announcement, the decision to float a new contract was made off customer feedback that the platform received on new ways for more Bitcoin exposure as well as income generation.
The announcement further lists certain key features that the new feature would have. It promises proper capital efficiency with margined contracts and “cross-margining with the underlying futures contract.” Furthermore, the feature will allow both physical and cash settlements and very low fees of $1.25 per options contract from January next year. There will also be instant messaging where users can connect with other participants using its “ICE Chat” and options analytics as well.
An European style option will be available as well, which will significantly reduce burdens that are usually associated with operations. As part of the announcement, Bakkt CEO Kelly Loefller says that the feature will be focused on corporate customers.
“The Bakkt Bitcoin Options contract will be based on the benchmark Bakkt Monthly Bitcoin Futures contract and represents another important step in developing this asset class for institutional investors, their customers and investors.”
Bakkt recently achieved another all-time high in response to Bitcoin’s market loss.
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