Bakkt Bitcoin Futures options to launch on Dec 9, 2019

Bakkt to offer options on its bitcoin futures contract. As per the announcement, Bakkt will launch the first regulated options contract for bitcoin futures on December 9, 2019. This will give the buyer of a futures option contract the right to buy or sell a particular futures position at a specified price any time before the option expires.

According to Bakkt CEO, Kelly Loeffler, “the new contract is based on customer feedback and is designed to hedge or gain bitcoin exposure, generate income, and offer cost and capital efficiencies”.

Since the Bakkt Bitcoin futures launch one month ago, Bakkt is continuously onboard new institutional and retail customers. Notably, yesterday a record 590 contracts of Bakkt Bitcoin monthly futures change hands.

Bakkt which is yet to pick-up a decent trade volume in its platform hopes that adding options to its futures contracts will make it an attractive investment asset class for institutional investors and customers.

Bakkt’s competitor, CME is also working to launch bitcoin options contracts. Currently its pending regulatory approval. CME hopes that by Q1 2020 customers will be able to use options on its Bitcoin futures contracts.