Anyone after hype surroundingBakktis probably hoping to work out what, “physically delivered Bitcoin futures contracts” really are. The solution: Just exactly what they appears like.

You trade 1 afternoon Bitcoin futures contracts Bakkt, plus they’re settled 24 hours later at Bitcoin. I.e. you obtain actual Bitcoin on your Bakkt account add up to a own holdings in stocks contracts out of the prior trip to the beginning of each trading day.

You may observe the state Bakkt page to the ICE web site for details today (TIP: trading starts Dec 1-2, 2018 impending regulatory approval).

This permits you to gamble on the amount tag on Bitcoin at as soon as with contracts, but enables you begin daily together with your balance in actual Bitcoin.

It is, essentially, only about the nearest you will obtain into merely trading Bitcoin without trading Bitcoin.

The purpose with the being if you would like to play with the BTC into USD match with Bakkt, it’ll involve holding actual Bitcoin.

Meanwhile, after all there’s not any leverage on Bakkt, you’re consistently working at a 1:1 ratio.

That also suggests that since demand rises, there’ll be physiological Bitcoin being stored at Bakkt account as opposed to floating about the available marketplace (unlike with Bitmex such as where you’re able to leverage against physiological BTC and also unlike CBOE or even CME at which you hold USD).

This means it is very likely to avert any superior just like people watch GBTC or may possibly view an ETF.

The gist is easy, the important points I am unclear about yet.

For instance, it isn’t clear to me if this works like an exchange (where you have a custodial wallet of sorts) or if they will deliver to any BTC address. I am also not sure if every transfer to accounts is recorded on the blockchain, or if Bakkt holds Bitcoin in cold storage and accounts are credited (thus balances would represent Bitcoin held by Bakkt, but would represent individual transactions on the blockchain.

Right now I’m working off what I know from filings, the official site, Bakkt’s Twitter, and Medium posts. As I know more I’ll be able to correct any errors I made and fill in the blanks.

For now the answer to the question “exactly what exactly are delivered Bitcoin futures ” is, “precisely what it appears like. “

Question: What sets Bakkt apart in the digital share space?


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Bakkt’s “Physically Delivered Bitcoin Futures Contracts” Explained