The crypto-exchange Bakkt will make the future of the market with futures contracts. According to a press release, the futures for the cryptocurrency Bitcoin are expected to come this year. This announcement follows a recent change of staff.
Bitcoin futures and their impact on the market are expected to be known since last December at the latest. The announcement and launch of Bitcoin futures contracts by the CME and the CBOE caused (among others) strong growth in the bitcoin price. The signal behind this is that we are dealing with regulated, government-approved financial products, so they must be legitimate.
The fact that this does not always achieve the desired effect for investors, was revealed a few months later. The launch of Bitcoin Futures coincided with a (so far) incomparable bull run, which flattened just as quickly. The air from the bubble escaped at high speed, many were barked. Since the accusation of manipulation was not far – according to studies, the Bitcoin futures had a share in the price increase as well as the price decline. However, as we now know, the short-term blistering only made the market more mature than before.
Physically backed Bitcoin Futures
Now, Bakkt steps in to bring the market a new product: physically backed Bitcoin Futures. In contrast to the usual Bitcoin Futures you bet something different here:
“These are futures contracts, in the fulfillment of which the asset (here: bitcoin) or the right of ownership changes hands. That is, the Short Position commits to sell the predetermined amount of Bitcoin at the previously agreed price upon expiration of the counterparty’s contract and to transmit it “physically” (if one can speak of it at Bitcoin). If the Bitcoin price is higher than the agreed price at that time, the short position has lost. The deal for the long position was accordingly good. “
Announcement after personnel change
The physically deposited Bitcoin futures were originally planned for November. Having recently received prominent support from Coinbase’s Adam White, the stock exchange has now announced in a press release the final date for the launch of futures contracts: December 12, 2018.
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