Bakkt is now planning on launching cash-backed Bitcoin futures that will be based out of Singapore. However, these cash-backed Bitcoin futures will be available to traders worldwide including the United States.
Apparently, there is strong customer demand among the Bakkt user base for cash-backed Bitcoin futures, meaning that the futures contracts settle for cash and involve no actual Bitcoin. It is based on this customer demand that Bakkt has decided to launch its latest product.
Bakkt, a subsidiary of the Intercontinental Exchange (ICE), which is the parent company of some of the biggest stock and futures exchanges in the world, recently launched physical Bitcoin futures in the United States. Physical Bitcoin futures means that the futures contracts settle for actual Bitcoins, and therefore physical Bitcoin futures can have an impact on the spot Bitcoin market. Bakkt physical Bitcoin futures are the first of its kind.
Notably, the Chicago Mercantile Exchange (CME) already offers cash-backed Bitcoin futures and has become extremely popular, with volumes approaching the level of top spot cryptocurrency exchanges. When Bakkt eventually launches cash-backed futures, which may happen before the end of this year, CME will finally have some competition in the cash-backed Bitcoin futures sector.
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