Bitcoin futures are a daily futures contract, which is settled physically, and will be supported by real BTC coins stored in the cryptocurrency warehouse of the ICE. Every futures contract will undergo validation via ICE Clear U.S., which is the company’s clearing venue.
Bakkt is the venture created in the collaboration between the Intercontinental Exchange and such giants as Microsoft and Starbucks, in attempt to design a compliant and transparent ecosystem for cryptocurrencies.
Bakkt was developed to become a regulated ecosystem, which offers security to the institutional financiers that desire to become exposed to digital assets. Last month, Bakkt claimed that physical BTC futures would be dealt versus the USD, GBP and EUR fiat currencies.
Bakkt promotes cryptotrading that is completely collateralized or is subjected to preliminary funding. Thus, Bakkt’s new daily BTC contract will not be dealt on margin, utilize leverage, or facilitate creation of a paper claim for a real asset.
For each buy of a USD/BTC futures contract there is going to be a 1 BTC settlement delivery to the account of the owner, which distinguishes from the existing cash-settled BTC futures markets on CBOE and CME, where no actual digital currency become obtained upon expiry.
Financiers of the Bakkt network are Galaxy Digital, and Pantera Capital, to name a few.