Bakkt Warehouse To Accept Deposits Ahead of New Futures Launch

Bakkt Warehouse cryptocurrency derivatives bitcoin deposits

Crypto derivatives platform Bakkt is preparing to accept crypto deposits, providing cryptocurrency users with secure storage for their assets ahead of the launch of new bitcoin futures contracts.

The move comes ahead of the widely anticipated launch of regulated daily and monthly bitcoin futures at the exchange, due to launch on September 23, after a lengthy period satisfying regulators in the U.S. of their plans.

In a tweet, the firm confirmed its Bakkt Warehouse would begin accepting deposits from September 6, ahead of the launch of its new futures contracts.

“On Sept. 6, our Warehouse will begin offering secure storage of customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept. 23. These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and custody.”

Bakkt only recently secured full regulatory approval for the launch of the new futures, which provide physically settled delivery at a future date in a compliant, secure market environment.

The proposals have been in the pipeline since last year, and have been subject to several delays and hurdles before winning the approval of regulators.

Opening Bakkt Warehouse deposits is the first step for the firm in the roll-out, which will culminate in the launch of the new futures contracts next month.

As distinct from cash-settled futures, currently available from CME, there is no fiat equivalence with these new instruments — the Bakkt futures will settle for cryptocurrency when the contract expires, rather than a fiat cash amount.

Bakkt is positioning itself as a regulatory-compliant daily product, something investors can turn to instead of trading on spot markets.

The daily and monthly futures will give investors the option to agree to a price on the spot for future delivery of cryptocurrency, providing regulated, margined exposure to cryptocurrency markets.

Noting the value of the futures as a margin-traded daily instrument, Bakkt CEO Kelly Loeffle said the regulated environment would appeal to investors.

“So when you think about transacting on the futures exchange, you’re operating within a (federally) regulated exchange.”