Intercontinental Exchange, the owner of the New York Stock Exchange, launched its Bitcoin futures contracts late on Sunday to trick investors who were reluctant to trade the cryptocurrency.
The first deal with the new contracts was made on the ICE Futures Exchange at 20:02 ET at a price of $ 10,115, Bakkt said in a Twitter post. Bakkt is an ICE-backed company that aims to make cryptocurrency trading and payment profitable to both retail and institutional investors.
The futures are physically available, ie they are paid out on settlement in Bitcoin. This is different from the ICE competitor CME Group, which in 201
Cryptocurrency fans hope that ICE's Bitcoin futures, which are regulated at the federal level, can give much-needed legitimacy to a controversial asset class for illegal activity in the fledgling industry.
Bitcoin is also known for its wild volatility – for example, a bubble from late 2017, where prices rose nearly $ 20,000 the following year. Since then, the cryptocurrency is on the rise this year, and experts attribute the price jump to big companies like ICE and Facebook with their planned cryptocurrency libra meddling in space.
Futures Contracts, Legal Purchase Agreements or By selling a commodity at a specific price and time, investors can bet on whether the value of the underlying asset will rise or fall. In the case of the ICE, investors can, according to its website, trade in daily or monthly futures.
Bakkt, which has worked with ICE to bring the derivatives to market, also includes Microsoft Venture Arm M12 and Boston Consulting Group as investors. The company teamed up with the Starbucks coffee chain last year to enable people and institutions to buy, sell, store and ship cryptocurrencies.
Attempts to bring bitcoin futures to the market have encountered problems in the past. Cboe Global Markets, which launched its own contracts at the end of 2017, announced earlier this year that it would not be adding new ones. Meanwhile, US firm LedgerX has been forced to resign from a launch of physical Bitcoin futures after a major market regulator said it was "not yet approved". The price only rises 0.5% to about $ 9,950.