According to reports, Bakkt has announced a date for the launching of its first BTC futures options contract that is regulated by CFTC. The date scheduled for the launch is December 9, 2019.
The explanations of the CEO of Bakkt in a blog article revealed that the said BTC Options contract would be established on the Bakkt Monthly Bitcoin Futures contract. She further mentioned the reason for the introduction of this new product. The CEO stated that it was because of customer feedback, and its design is towards hedging or gaining the publicity of BTC, generating income, as well as offering cost and capital efficiencies.
When it comes to regulatory approval, the CEO mentioned the way ICE Futures U.S. utilised the self-certification filing procedure of the U.S. CFTC to obtain approval for the new product.
The major characteristics of the Bakkt Bitcoin Options contract are capital efficiency, cash or physical settlement, European-style options, low fees, instant messaging, block trades, and options analytics.
A European-style option reduces the chance to execute early and lowers operational burdens. From January 2020, the fee for every contract will be $1.25.