The crypto exchange Bakkt will delight the market with futures contracts in the future. According to a press release, the futures for the crypto currency Bitcoin are due to come this year. This announcement follows a recent personnel change.
Here you can find the explanation in detail
Bitcoin futures and their influence on the market should have been known since last December at the latest. The announcement and launch of Bitcoin’s futures contracts by the CME and the CBOE (among other things) resulted in strong growth in the Bitcoin price. The signal behind it: We are dealing with regulated, government-approved financial products, so they must be legitimate.
The fact that this does not always have the desired effect for investors became apparent a few months later. The launch of the Bitcoin futures coincided with a (so far) incomparable bull run, which flattened out just as quickly. The air from the bubble escaped with high speed, many were alienated. The accusation of manipulation was not far off – according to studies, the Bitcoin futures had as much a share in the price rise as in the price fall. But as we now know, the brief bubble formation only led to the market now being more mature than before.
Physically Backed Bitcoin Futures
Now Bakkt is entering to bring a new product to the market: physically deposited Bitcoin Futures. In contrast to the common Bitcoin futures, you bet a little differently here:
„These are futures contracts, the fulfilment of which changes the asset (here: Bitcoin) or the ownership right to it the owner. This means that the short position undertakes to sell the previously determined quantity of Bitcoin to the counterparty at the previously agreed price after the expiry of the contract and to transmit it „physically“ (if this can be spoken of at Bitcoin). Should the Bitcoin price at this time be higher than the agreed price, the short position has made a loss. The deal for the long position was accordingly good“.
Announcement after personnel change
The physically deposited Bitcoin futures were originally planned for November. Having recently received prominent support from Adam White of Coinbase, the Exchange announced in a press release the final date for the launch of the futures contracts: 12 December 2018.