Little greater than a month after their launch, Bitcoin (BTC) choices contracts on the Intercontinental Trade’s digital asset platform Bakkt seem
Little greater than a month after their launch, Bitcoin (BTC) choices contracts on the Intercontinental Trade’s digital asset platform Bakkt seem to have seen sluggish uptake.
The latest available reports for the contract, Jan. 24 and Jan. 27, reveal that 11 days have elapsed because the final commerce.
Merchants bide their time
As reported, Bakkt launched its new BTC choices contract in early December, shortly after rolling out a cash-settled Bitcoin (BTC) futures providing in November.
Choices are derivatives which are designed to offer merchants with further flexibility hedge towards an asset’s value swings in both path: thus an choices contract affords them the prospect to buy both a proper to purchase (a name possibility) or promote (a put possibility) the given asset at a specified “strike value” decided on or earlier than the contract’s expiration date.
Each the brand new choices contract and cash-settled futures adopted upon Bakkt’s existing bodily delivered Bakkt Bitcoin (USD) Month-to-month Futures contract — a pioneering product that was the primary within the business to offer futures merchants direct exposure to the underlying cryptocurrency.
As reported, the physically-settled futures contract had met with underwhelming volumes in its early days — a indisputable fact that was instantly unfavorably compared with the fiat-settled BTC futures on CME, which first went to market in December 2017.
But uptake for the product ultimately picked up, in correlation with a interval of volatility in Bitcoin’s spot market valuation on the time (late October-November 2019).
Except for Bakkt, market individuals together with Malta-based cryptocurrency trade OKEx and CME have each launched or plan to launch Bitcoin choices contracts this 12 months.