WSJ: BITCOIN FUTURES FROM BAKKT WILL BE APPROVED AT THE BEGINNING OF 2019

The first futures contracts of BAKKT, which will be redeemed in cryptocurrencies, and not in cash, will be approved by regulators at the beginning of next year, the WSJ newspaper reports.

The contract, launched by the owner of NYSE, Intercontinental Exchange Inc., is aimed at institutional players who remained outside the cryptocurrency market due to concerns about the lack of clear regulations and possible price manipulation. Bitcoin futures of Bakkt will allow investors to bet on the price movements of cryptocurrencies and, unlike other offerings in the market, they will be settled in cryptocurrency, not in dollars.

The initiative has received support from major corporations like Microsoft and Starbucks. Bakkt CEO Kelly Leffler noted: “As soon as digital assets gain more confidence and legal framework, it will be more comfortable to use them as a currency.”

After a record high in bitcoin prices at the end of the last year, in December, CME Group Inc. and Cboe Global Markets Inc. launched bitcoin futures. Since then, the market has changed its trend to bearish. Bitcoin futures were a big step towards bringing the crypto world closer to Wall Street, but nevertheless, as Leffler noted, “a cash settlement is good, but it is necessary to ensure the physical delivery of bitcoin.”

Intercontinental exchange (ICE), the operator of 23 of the world’s leading exchanges, including NYSE, for the first time announced the creation of Bakkt, in August of this year. Since then, the exchange has been constantly working with regulators to ensure that their business plan meets all regulatory requirements.