- It was announced earlier this month that Bakkt has released two new financial products.
- These two new products include both Bakkt Bitcoin (USD) Monthly Options and Bakkt Bitcoin (USD) Cash-Settled Futures.
- The platform says that the former is actually overseen by the Commodity Futures Trading Commission.
It was announced earlier this month that the Bitcoin futures Bakkt platform has released two new financial products. So three months after the platform went live (to a disappointing release), we are seeing two new products which could change the face of the project.
These two new Bitcoin investment products were revealed at the end of last week and include both Bakkt Bitcoin (USD) Monthly Options and Bakkt Bitcoin (USD) Cash-Settled Futures.
The platform has gone onto say that the former monthly options product is actually the very first Bitcoin futures contract to be have been overseen by the United States Commodity Futures Trading Commission (CFTC). The announcement states that the price discovery occurs within a federally regulated market. Due to this and as a result, there is no exposure to de-regulate Bitcoin spot markets.
The director of digital currency research at TradeBlock, the data provider based in New York, John Todaro has spoken on the matter, saying:
“In this way, cash settled futures are often seen as simpler instruments, mostly for speculative purposes, have less delivery costs/warehousing costs associated with them, but in some cases may not be seen as the best instrument for parties that actually need the physical asset for hedging or other (like a bitcoin miner for instance may need to deliver the physical bitcoin). In both cases, futures contracts require the two parties to transact at a certain price at a future date.”
It will be interesting to see how these new products play out. For more news on this and other crypto updates, keep it with CryptoDaily!