The keenly awaited entry of Bakkt in the Bitcoin futures trading platform has generated quite a buzz in the crypto landscape. Today, the wait is over. According to the official tweet, Bakkt commenced the testing for user acceptance (UAT) for BTC futures, both daily and monthly, on Jul 22.
Today kicks off user acceptance testing @ICE_Markets for the Bakkt Bitcoin Daily & Monthly Futures contracts
Testing is proceeding as planned with participants from around the world
— Bakkt (@Bakkt) July 22, 2019
The futures platform, powered by Intercontinental Exchange (ICE), had initially hinted at the possible launch date for the testing, sometime in May.
On Jul 22, Bakkt COO, Adam White, suggested emulating Apollo 11’s moon landing with the launch of the UAT for Bitcoins futures contracts. According to him, this is an extraordinary achievement which will pave the way for further innovations in trading crypto markets.
What’s in store for traders?
The futures contracts will be an agreement to buy or sell a specific asset, in this case, Bitcoin, on a future specified date. The move is not aimed at optimizing profits but hedging against the risks associated with fluctuating prices.
Bakkt’s Bitcoin futures platform will accept participants from across the globe. The futures contracts are designed in such a way that the users will receive the underlying asset, Bitcoin, once the contract expires.
With settlement options of monthly and daily, Bakkt’s ground-breaking concept of physically delivering and storing of Bitcoins will be guided by an internal custodian service, ensuring that every trade abides by the regulatory framework.
Bitcoin market reacts negatively
Strangely enough, the Bitcoin market sentiments could not capture the essence of Bakkt’s cutting-edge innovation in cryptocurrency trading markets. Following the news of the launch, the Bitcoin price slashed by five percent (5%) within twenty-four hours.
The price slump only contributes to Bitcoin’s run of bad luck in the past two weeks. With a total loss of eighteen percent (18%), the crypto king continued with its dismal performance this week as well by losing over seven percent (7.8%).