On Monday, 22nd October, New York Stock Exchange (NYSE) parent company Intercontinental Exchange (ICE) announced that it would list Bitcoin Futures on its platform called Bakkt and its pending regulatory approval.
Bakkt is a platform for storing, trading and spending digital assets. The platforms bitcoin daily futures would be settled physically which would then be cleared by ICE Clear U.S. Incorporation.
The document released on Monday stated that every Bitcoin future would call for delivery of one bitcoin. The cryptocurrency would be held in a Digital Asset warehouse which would be traded in U.S dollar terms. Each business day in the exchange would list one daily contract as mentioned in the released document.
Large exchanges which are run by CBOE Global Markets and CME Group already have bitcoin futures but they are settled in cash, which means that the cryptocurrency does not change hands in those platforms.
The Bakkt platform is different from its competitors as it transfers cryptocurrency instead of cash which would provide its user direct access to cryptocurrency by putting Bitcoin into the user wallet when thier trade ends.
In August of this year, the company made an announcement of the Bakkt platform and stated that it would launch their services in November. On Monday, the ICE made an announcement that it would launch these contracts in December 2018 following regulatory approval from the Commodity Futures Trading Commission(CFTC).