Next bitcoin market moves
Bakkt - the future regulated global ecosystem for crypto assets recently unveiled by the Intercontinental Exchange (ICE) - will not support margin trading for its Bitcoin contract (BTC), according to an official Medium post published Aug. 20.
Earlier this month, ICE - operator of 23 major global exchanges, including the New York Stock Exchange - unveiled ambitious plans to create a seamless global ecosystem for digital assets that would cover the spectrum of markets regulated by federal government and warehousing for the needs of the merchant and the consumer.
The announcement unveiled plans to offer a 1-day physical delivery BTC contract through November, subject to pending approval by US regulators.
Bakkt CEO Kelly Loeffler today outlined the three pillars of the project, which she will aim to establish "consistent regulatory construction," pre- and post-trade institutional infrastructure, and "efficient and transparent price discovery" for the encryption trade . Loeffler said today that physical delivery is "a critical element" to this last point, adding that:
"Specifically, with our solution, the purchase and sale of [B] itcoin is fully guaranteed or pre-funded. As such, our new daily contract will not be negotiated with margin, leverage or will serve to create a paper claim on an asset real. "
The CEO points out that these plans differentiate the platform strategy from existing BTC futures contracts, such as those currently offered at CME and CBOE, which are ultimately liquidated in fiduciary currency.
By avoiding margin, leverage and financial settlement - and by providing secure and regulated storage - Loeffler says the platform will better support market integrity and enable "reliable pricing" which it believes to be essential to "advance the promise" . of digital coins. "
While Loeffler's announcement largely confirms what was already stated in ICE's initial announcement, this explicit and detailed statement of the project's intentions has now been well received by the cryptomoeda community.