Bakkt authorized to launch their physically settled bitcoin contracts.

Bakkt, the subsidiary of Intercontinental Exchange, announced Friday that the New York State Department of Financial Services approved it for the company to begin offering physically liquidated future bitcoin contracts, with the intention of launching its products on September 23. Although Bakkt was introduced in August, it has been working on regulatory approvals since last year, with plans to offer two types of contracts: daily and monthly, both established in Bakkt Warehouse.

With the approval of the Department of Financial Services of the State of New York, Bakkt Trust Company is created as a qualified custodian and for future bitcoin physically delivered they will be guarded by Bakkt Warehouse, offering a security, regulated exchange and accessible to the market worldwide.

According to Kelly Loefler, "Bitcoin futures contracts will not depend on unregulated spot markets for settlement prices, thus serving as a transparent price discovery mechanism for the Bitcoin reference price." "The daily contract is designed to provide an instrument with margin." "The monthly contracts will allow investors to have an opinion on bitcoin up to 12 months later."

Loefler also adds: "The other thing that is important about a monthly contract is that it offers the ability to take [snapshots] at different times during the next year, so it adds an extended trade ... and the moment of, for for example, next year's reduction, the contract, you will be able to observe that period of time in 2020 ".