Galaxy Digital, XBTO execute first block trade of Bakkt Bitcoin Futures

Intercontinental Exchange (ICE), the governing body of the New York Stock Exchange, has carried out the first block trade of Bakkt Bitcoin futures contracts.

As per a press release, the first Bakkt Bitcoin futures trade was executed between crypto investment firm Galaxy Digital and over-the-counter (OTC) trading firm XBTO on Oct. 1. The deal was cleared by agricultural commodities merchant ED&F Man.

“Last week, we bought the first Bakkt Bitcoin Daily Futures contract and took the first physical delivery of a digital asset under existing commodity futures laws and regulations. This week, we executed the first block trade. We’re pleased to report that the launch was successful and can accommodate large trades,” XBTO said in a statement.

A block trade is a large transaction that takes place off the open market to avoid moving the price too much. It is submitted to the Exchange and cleared through ICE Clear U.S.

“Galaxy Digital Trading views futures as a critical institutional market tool for managing risk. As the digital asset class continues to mature, we view the launch of Bakkt as a foundational piece of market infrastructure,” Galaxy Digital said.

Other than the first block trade, Trabue Bland, President of ICE Futures U.S., said that since launching, the Bakkt Bitcoin Futures has also physically delivered the first bitcoin against a futures contract.

“Each of these achievements, on top of tight bid/offer spreads and a growing base of participants and clearing firms, are contributing to the first end-to-end regulated futures contract from price discovery to custody and physical delivery,” Bland said.

Meanwhile, CoinDesk noted that ICE did not disclose the size of the transaction. It also did not specify if the block trade was made in the exchange’s monthly- or daily-settled futures contracts.

The transaction follows after Bakkt recently launched its much-awaited bitcoin futures contracts on ICE Futures U.S. on Sept. 23, after more than a year of ensuring full compliance with U.S. authorities.

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