On 21st November 2019 the leading regulator of global exchanges Intercontinental Exchange (ICE) announced that it is launching cash settled Bitcoin futures contracts in Singapore, come 9th December 2019.
For the first time, the parent company of Bitcoin futures trading platform Bakkt, ICE, is bringing Bitcoin to USD cash-settled monthly futures to its millions of users across the globe. The contract listing will take place on ICE Futures Singapore and further cleared by ICE Clear Singapore, both overseen by the Monetary Authority of Singapore, once the order is placed. The move is likely to broaden investor experience in Bitcoin markets.
— Adam White (@WhiteAdamL) November 22, 2019
Bakkt cash-settled Bitcoin futures coming to Asia
Lucas Schmeddes, President & COO of ICE Futures and Clear Singapore, sheds more light on the ICE’s recent move. Our new and innovative product, the cash-settled futures contract, will offer Asian investors a chance to gain exposure in this emerging market. While doing so, we will make the most of ICE’s regulatory expertise and its global reach to provide a secure, transparent and legally compliant environment for Bitcoin trading, Schmeddes explained.
Given the fact that brought a degree of authenticity to the whole concept of cryptocurrencies and blockchain by rolling out first-ever futures settled in Bitcoin, the idea of Bitcoin to USD settled futures doesn’t sound convincing to a lot of enthusiastic Bitcoin traders than anticipated. Thus, as soon as the COO of Bakkt, Adam White, took to Twitter to announce this news, it did not go down well with many of his followers.
Twitter does welcome ICE’s latest move
A certain @crypto_deniro commented that Bitcoin was the ultimate deal for Bakkt and that aiming for cash settled futures seems like going back on that conception.
Cash settled? Your entire premise was btc settlement.
— crypto_deniro (@crypto_deniro) November 22, 2019
Another user, @davidchoi5, condemned Bakkt on its move by saying that this is only of CME’s pump and dump scheme.
2017 CME Futures pump and dump scheme all over again?
— david choi (@davidchoi5) November 22, 2019
It is important to note here that for almost two years, Bakkt Bitcoin monthly futures contract generated quite a hype before its launch. And while its soft launch did not stir the cryptocurrency markets, as anticipated earlier, it eventually managed to gain momentum a month after its opening, with trading volume witnessing almost eight hundred percent (800%) hike in October. Will its recent move see a similar trend as well? Only time will tell.
Featured Image by Pixabay