Bakkt readies crypto futures trading for launch
The future has finally arrived
Patience is a virtue, and that virtue has paid off for Bakkt. After receiving approving to launch cryptocurrency-based products from the Commodity Futures Trading Commission (CFTC) last month, the ICE-owned company is ready to get the ball rolling on physically-traded Bitcoin futures. The launch is made possible by the Bakkt’s latest approval, that of the New York Department of Financial Services (NYDFS). Bakkt’s Bitcoin futures are expected to be launched next month.
The NYDFS has reportedly signed off on a request by Bakkt to operate a trust charter. That approval came after Bakkt convinced the CFTC and financial regulators that the futures trading platform was operating in accordance with regulations following a testing period that began in July. The platform doesn’t incorporate any spot trading data, a segment that has been routinely identified as containing manipulated data that skews actual pricing.
According to Bakkt, “Our contracts have already received the green light from the CFTC [Commodity Futures Trading Commission] through the self-certification process and user acceptance testing has begun. With approval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures. This offers customers unprecedented regulatory clarity and security alongside a regulated, globally accessible exchange in a market underserved by institutional-grade infrastructure.”
September 23 is the expected launch date for the platform, provided nothing goes wrong between now and then. Bakkt has been planning on launching futures trading for a year, but has routinely had to deal with regulatory issues in order to find approval.