The Bakkt Bitcoin Futures earlier scheduled to launch on the Intercontinental Exchange (ICE) on December 2018, will now go live on January 24, 2019. The new launch date was revealed in a notice released by the ICE today, Nov 20.
According to the notice, the new date is still subject to regulatory approval even though it period between it “will provide additional time for the customer and clearing member onboarding before the start of trading and warehousing of the new contract.”
Bakkt Bitcoin Futures contract is an offering proposed by the crypto custody firm earlier this year. This contract will allow a customers Bitcoin to be delivered on a specific date, other than the day they purchased the crypto.
The existence of such a product is expected to attract institutional investors to cryptocurrencies in the long run, by reducing the risk incurred by price volatility. Also, if the Commodity Futures Trading Commission (CFTC) were to approve the contract, then institutional investors will have more confidence in the digital asset class.
The trading exchange, Intercontinental Exchange (ICE) has the New York Stock Exchange as its parent company and made roughly $5.8 billion in profits last year. Bakkt, on the other hand, is a crypto custody startup that currency serves as a clearinghouse for digital assets.
How The Bakkt Bitcoin Futures Postponement Affects The Crypto Markets
Given the current bearish state of the crypto markets, some traders may likely have fixed their sights on the earlier proposed date of December 12 and for this reason, have kept holding their assets. Those who fall into this category may sanction a sale even though this should not be the case.
The news also gives some hope that there is a future of bitcoin and the crypto markets beyond this week’s ugly market performance. At least, there’s still the prospect of welcoming institutional investors, and January 24 is not far away.