Bakkt physical Bitcoin Futures launched in September, and now only a few months later Bakkt is launching cash settled Bitcoin Futures and Bitcoin Options. These new Bitcoin (BTC) trading products became available on December 9 according to a Bakkt Medium post.
The crypto space highly anticipated the launch of Bakkt physical Bitcoin Futures in September, since they were the first official physical Bitcoin Futures exchange. This means that traders can redeem actual Bitcoins (BTC) when the futures contracts expire. In theory this would have allowed institutional investors and Wall Street traders to purchase Bitcoin (BTC), which would lead to a rally.
However, the physical Bitcoin Futures can be redeemed for cash as well, and recent data shows that barely anyone is redeeming actual Bitcoins (BTC), as discussed in-depth in a previous CryptoIQ article.
Bakkt launched the cash settled Bitcoin Futures in response to customer demand for purely cash settled futures. It seems the trend is that traders are generally not interested in redeeming their futures contracts for Bitcoin (BTC), and would rather keep their money liquid in cash.
The cash settled Bitcoin Futures offered by Bakkt are based in Singapore but available worldwide. These cash settled Bitcoin Futures use the settlement price of the physical Bitcoin Futures, and are available in the form of monthly contracts.
The Bakkt Bitcoin Options are perhaps the biggest news, since they are the first official Bitcoin Options exchange. A recent CryptoIQ article discusses how Bitcoin Options work in-depth. Essentially, Bitcoin Options open up a variety of new trading techniques and strategies in the crypto space.
Bakkt will not be the only Bitcoin Options exchange for long however. CME, which hosts the most popular Bitcoin Futures exchange, will be launching Bitcoin Options on January 13.
Overall, this news is another indication that the crypto space is becoming more mature and institutionalized.