Bakkt will launch bitcoin options before CME

The Bakkt cryptocurrency platform will launch the first regulated Bitcoin options on December 9.

The Bakkt Bitcoin Options contract will be based on the benchmark Bakkt Monthly Bitcoin Futures contract and represents another important step in developing this asset class for institutional investors https://t.co/4ZE0LIBJJP

– Bakkt (@Bakkt) October 24, 2019

The underlying asset of the contracts will be Bakkt's monthly delivery futures, which began trading in September.

The launch of the new Bitcoin derivative on the platform was a response to customer demand and was designed to expand hedging opportunities for them, the company's executive director Kelly Loffler noted on the blog.

One of the features of the new Bakkt tool will be that it is an option contract of a European type . Unlike American ones, they cannot be executed until the end of the validity (maturity).

Settlement of options will be possible in cash or cryptocurrency physical delivery (one contract – 1 BTC).

The platform will begin to charge a trading commission in January.

Earlier plans to launch Bitcoin-options in the first quarter of 2020 declared the Chicago Mercantile Exchange (CME). Later, there were reports of Bakkt's intention to get ahead of the competition with this product.

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