NYSE Owner’s Bitcoin Futures Market Will Open in Mid-December

Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE), will list its highly-anticipated bitcoin futures agreement in less than 2 months, on December 12.

Referred to as a physically-settled everyday futures contract, the agreements will be backed by actual bitcoins kept in ICE’s Digital Property Warehouse. According to a press release, each futures agreement will be confirmed through ICE Clear U.S., the company’s cleaning venue.The press release states in part:”Each futures contract

calls for delivery of one bitcoin kept in the Bakkt Digital Possession Warehouse and will sell U.S. dollars and others. One day-to-day agreement will be listed for trading each Exchange Business Day.”Released in a partnership in between ICE– the operator of 23 leading international stock market, including the NYSE– and other home names including Starbucks and Microsoft, the Bakkt venture aims to produce an open, compliant ecosystem for digital assets.Bakkt was produced to be a”regulated community”that supplies security for institutional investors who wish to get direct exposure to cryptocurrency. At the time of the statement in September, Bakkt had actually said the physical bitcoin futures would be traded against the U.S. dollar, British pound sterling, and euro.”A vital element to rate discovery is physical delivery. Specifically, with our option, the trading of bitcoin is completely collateralized or pre-funded. Our brand-new day-to-day bitcoin agreement will not be traded on margin, use take advantage of, or serve to create a paper claim on a real property,” Bakkt had stated at the time, responding to criticisms that the contracts could mask “hidden take advantage of.”For each one purchase of a USD/BTC futures contract, there will be a shipment of one bitcoin into the owner’s account at settlement. That contrasts with the bitcoin futures markets on CBOE and CME, which are cash-settled, implying that no real cryptocurrency assets exchange hands at expiration.Investors in Bakkt’s platform consist of Mike Novogratz’s Galaxy Digital, Pantera Capital, and others.Featured Image from ShutterstockFollow us on Telegram orsubscribe to our newsletter here.