In a November 22 press release, ICE, the operator of 23 of the world’s leading exchanges, including the New York Stock Exchange, announced that the contract will be listed on ICE Futures Singapore from December 9.
Amendments subject to review until 29 November
During the Invest: NYC conference earlier this month, Bakkt’s COO Adam White was the first to publicly announce that Bakkt was targeting a cash-settled option.
Today’s announcement formally confirms the information provided to the press by insider sources, in particular that the contract will be approved by ICE Clear Singapore and approved by the Monetary Authority of Singapore, the de facto central bank and financial regulator of the city state.
According to ICE, the new cash settled futures will be settled with data from the existing physically delivered monthly futures contract of Bakkt Bitcoin (USD). This is seen as a groundbreaking product that was the first to allow futures traders to directly engage in the underlying crypto currency.
ICE Singapore has published details of the contract specifications and proposed rule changes and invited the parties to comment by 29 November.
Crypto-Twitter is split
While Bakkt’s physical contract was almost unanimously welcomed as a milestone by the crypto community and the industry, the social media’s response, particularly Adam White’s Retweet to ICE’s endorsement, was more ambivalent.
Bitcoin cash-settled futures traded on both CME and CBOE since December 2017 have consistently raised the suspicion that Bitcoin’s pre-contract price is susceptible to manipulation.