Bakkt‘s Bitcoin (USD) Daily Futures Contract, the physically-settled daily futures contract, is quite close to getting the green light from the authorities, according to reports on the Wall Street Journal (WSJ). The exchange has been working with the Commodity Futures Trading Commission (CFTC) to ensure its business plan is compliant with the agency’s regulatory framework. A couple of areas that stood out are the exemptions for the exchange to keep customer’s bitcoins, cybersecurity issues that could crop up and the financial liability, in the event of a hack. Once the CFTC decides to approve the project, the public has 30 days to weigh in with comments.
Bakkt was developed by Intercontinental Exchange, the parent company of the New York Stock Exchange (NYSE), as a regulated trading platform for cryptocurrencies, where retail and institutional investors can invest in products that are compliant with regulators in the U.S. Bakkt’s first product is a futures contract that is poised to increase the liquidity of Bitcoin.
The Contract was expected to launch on December 12, before it was rescheduled for January 24, 2019. At the time, Bakkt CEO Kelly Loeffler had cited the interest and the “work required to get all the pieces in place” as reasons for the delay.