Bakkt commences user acceptance testing for its bitcoin futures

Bakkt, a subsidiary of New York Stock Exchange (NYSE) parent company Intercontinental Exchange (ICE), has started testing the delivery of BTC futures.

As per its official tweet, user acceptance testing for bitcoin daily and monthly futures began on Monday. As previously reported, daily settlement bitcoin futures allow clients to transact in a same-day market, whereas monthly bitcoin future contracts enable trading in the front month and across the forward pricing curve.

According to the ICE Futures U.S. filing with the CFTC, the contracts will be physically settled, which means “that the selling Clearing member would be required at settlement to deliver to the buying Clearing Member a specified quantity of Bitcoin.” Prices for both future contracts will depend on internal pricing discovery.

In addition, the final settlement of both contracts will be done at the Bakkt warehouse. The Bitcoin Magazine noted this is the first of its kind in the regulated bitcoin market as futures from Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) are settled in cash.

The most-awaited release of Bakkt’s futures was first announced by COO Adam White in a tweet, saying “On July 22, two days after Apollo 11’s 50th anniversary, Bakkt will initiate user acceptance testing for its Bitcoin futures listed and traded at ICE Futures U.S. and cleared at ICE Clear US.”