Intercontinental Exchange-founded Bakkt begins testing bitcoin futures

Bakkt, a cryptocurrency platform founded by Intercontinental Exchange (ICE), initiated user acceptance testing for its bitcoin futures contracts in 2019. These contracts aimed to bridge institutional investors with the cryptocurrency market by offering two key products:

Daily Bitcoin Futures: Allowed same-day trading and settlement, with contracts cleared through ICE Clear U.S.

Monthly Bitcoin Futures: Provided a forward price curve for longer-term speculation.

A critical distinction from competitors like CME and Cboe was Bakkt‘s use of physical bitcoin settlement (delivering actual bitcoin upon contract expiration) instead of cash settlement. This approach was lauded for improving price discovery and liquidity in the crypto market. However, regulatory hurdles delayed Bakkt’s launch, as the U.S. Commodity Futures Trading Commission (CFTC) scrutinized its compliance frameworks.

The testing phase involved global participants and marked a milestone in ICE‘s strategy to legitimize digital assets. Analysts like Sam Doctor of Fundstrat Global Advisors viewed Bakkt as a catalyst for institutional adoption, while critics highlighted challenges in scaling demand. Despite early enthusiasm, Bakkt’s long-term success depended on overcoming regulatory inertia and market skepticism toward crypto derivatives.