Bakkt Announces Cash-Settled Bitcoin Futures for Singapore
Institutional platform Bakkt announces the expansion of its product suite with cash-settled Bitcoin futures, which will be listed on the ICE Futures Singapore exchange.
Bakkt, the institutional cryptocurrency platform owned by Intercontinental Exchange (ICE), announced an expansion of its offerings with the upcoming launch of cash-settled Bitcoin futures. Unlike its existing U.S.-based product, which is physically-settled (meaning clients receive actual bitcoin upon settlement), the new contract would be settled in cash.
More importantly, the new futures would be listed on ICE Futures Singapore, marking Bakkt's strategic entry into the Asian market. This move was designed to cater to a different segment of institutional clients, particularly those in Asia who might prefer the simplicity of cash settlement or face regulatory restrictions on holding physical bitcoin.
By offering both physically-settled and cash-settled products in different regulatory jurisdictions, Bakkt was positioning itself to become a comprehensive, global provider for institutional Bitcoin derivatives. The announcement demonstrated the company's commitment to growing its footprint and tapping into the significant demand for regulated crypto products in Asia, a key region for trading and investment activity.It was a strategic step to compete with other major players, like the CME, which already offered popular cash-settled contracts.