Bakkt could soon proceed with its Bitcoin futures product if the CFTC does not raise any objections within 10 days.
We’ll Be Bakkt…Soonish
Bakkt could be cleared to proceed in just 10 short days pending Commodity Futures Trading Commission (CFTC) approval. Or rather, pending lack of CFTC disapproval.
In other words, you probably won’t be trading Bakkt futures in 11 days time. Should the CFTC have no objections, Bakkt intends to prepare for user acceptance testing (UAT) of its futures and custody solutions.
The UAT has an expected start date of July, and will ensure that customers can onboard, and test the trading and custody model.
Bakkt To The Futures
Bakkt also provided more details about the futures contracts it will offer once launched.
Two varieties will be available: a daily settlement contract, and a monthly futures contract. Price formation will utilise tools to detect disruptive practices such as wash trading. Contracts will be margined in a manner consistent with capital-efficient risk management in other global futures markets.
Additionally, Bakkt will contribute $35 million into the clearinghouse risk waterfall, aligning its interests for integrity and safety with other market participants.
Who Is Left Holding Bitcoin?
Finally, Bakkt also revealed that it is working with New York State Department of Financial Services to become a qualified custodian. The digital assets warehousing solution ‘will be supported by insurance, cybersecurity, and comprehensive compliance’.
However, their blog post made no mention of how far along this process was, leading some commentators to question the feasibility of the July start to UAT.
Bakkt makes a play for Blockchain Week news coverage by self-certifying their bitcoin futures with the CFTC, a good step forward.