What started out as a negative factor for the overall sentiment in the crypto sector may end up as being one of the most bullish contributors as of yet. The launch of Bakkt in September may very well have caused the Bitcoin price to dump. However, with CEO Kelly Loeffler becoming a U.S. Senator and the exchange launching a wide range of regulated Bitcoin futures products, the future looks brighter than ever.
The cryptocurrency institutional trading platform Bakkt, created by the Intercontinental Exchange (ICE), launched the first legal Bitcoin options and cash-settled futures in the U.S. The exchange announced the news on Monday and stated that physically settled Bitcoin contracts would now be used as a ‘benchmark’ to create new complementary products.
In an articles published on Medium, the exchange’s COO, Adam White, stated: “By starting with the physically delivered Bakkt Bitcoin (USD) Monthly Futures, we have a benchmark contract that provides the foundation for us to develop complementary products based on the needs of our customers.”
The new products are named “Bakkt Bitcoin (USD) Cash-Settled Futures” and “Bakkt Bitcoin (USD) Monthly Options”. White further discusses the state of the two products, adding that they are regulated by the United States Commodity Futures Trading Commission. Noting the contrast between regulated and unregulated platforms, his post also points out that the product’s price discovery occurs within a federally regulated market and that it is not exposed to unregulated Bitcoin spot markets.
Describing the cash-settled futures product, White announced that it would at first only be available on the regulated Singapore-based exchange Ice Futures Singapore. The contracts from this specific product are established through the settlement price made on the benchmark Bakkt Bitcoin monthly future contract. Additionally, the contracts are an additional option for investors who are unable to trade physically delivered contracts.
On a larger scale, Bakkt is evolving in a completely different way. The CEO of the exchange, Kelly Loeffler, was recently appointed a seat in the United States Senate. Her work begins around the end of the year when Senator Johnny Isakson is expected to retire, as she is set to replace him. With her being both the CEO of an influential and regulated cryptocurrency exchange and a U.S. Senator, the cryptocurrency sector may expect greater political support from Loeffler.