Bakkt Goes Live With Options, Cash-Settled Futures Products

Bakkt COO Adam White at CoinDesk's Invest NYC 2019.Barely three months after launching its long-anticipated physically settled bitcoin futures product, the Intercontinental Exchange's Bakkt has gone live with its bitcoin options and cash-settled futures contracts.

The New York Stock Exchange's sister firm announced in a blog post Monday that it's using its physically settled bitcoin contracts as a benchmark to support the new products, which were both announced in recent weeks.

The blog post compared Intercontinental Exchange's bitcoin ambitions to those of its Brent Crude Oil Futures.

The company launched a number of swaps, options and futures contracts based on the crude oil product, and hopes to follow "a similar playbook" to grow its bitcoin-related products.

"By starting with the physically delivered Bakkt Bitcoin Monthly Futures, we have a benchmark contract which provides the foundation for us to develop complementary products based on the needs of our customers," the blog post said.

While Bakkt's physical futures contract saw a slow start after it was launched in late September, volume has recently picked up, with the monthly futures product trading more than $120 million three months in.

Bakkt's options contract comes just a month before CME, which already offers cash-settled bitcoin futures in the U.S., launches its own similar product.

Bakkt's monthly options contract has no exposure to spot markets, the firm said.

The cash futures, offered through ICE Futures Singapore, seemingly takes aim at potential demand in Asian markets, though any ICE customer can trade the contract.

Bakkt announced the app in October, saying it would help consumers pay for goods using bitcoin.