ICE Releases Futures Which Pay Out In Bitcoin

ICE Releases Futures Which Pay Out In Bitcoin

The owner of the New York Stock Exchange, Intercontinental Exchange (ICE), has just started trading regulated Bitcoin futures contracts. Less than 24 hours ago, this new financial instrument began trading, increasing hopes that it will attract new investors who have, so far, stayed away from trading in cryptocurrency.

At 20.02 ET, the first trade took place at a price of $10,115. This is according to Bakkt, the company which is behind the contracts. Backed by ICE, Bakkt is a venture with the aim of facilitating cryptocurrency payments and trades.

Bitcoin Payouts

Probably the most significant fact about ICE’s futures contracts is that they are physically deliverable, paying out in Bitcoin when they are settled, or liquidated. This feature contrasts with ICE’s main competitor, CME Group, who had also released similar instruments in 2017, but payouts were in cash, not crypto. Physical settlement is normally used when trading oil, cattle, and metals.

ICE’s Bitcoin futures contracts are federally regulated, and, unlike Bitcoin CFDs, are allowed in the United States. It is hoped that this launch will provide legitimacy to a market which suffers from bad press, and constant controversy.

What are Futures Contracts?

Futures contracts, such as those launched by ICE, are legally-binding agreements to trade a particular commodity at a certain price and time. These financial instruments are a popular way for traders to invest in a market without having to physically purchase and store the commodity. Depending on whether they invest in order to benefit from the asset’s appreciation, or to short sell it and benefit from its depreciation, these instruments are extremely popular in all global financial centres.

Naturally, different types of instruments bring different conditions. In the case of ICE’s Bitcoin Futures Contracts, for example, traders can choose to buy and sell daily or monthly futures.

Are they Safe?

Any advanced trading instrument such as futures contracts comes with risk, so it is important that traders and investors are prepared to lose some or all of their capital before making a trade.

Bakkt, the ICE-backed company which released these Bitcoin futures contracts, has a stellar team of investors, including M12, Microsoft’s venture arm, and Boston Consulting Group. In the past, Bakkt also partnered with Starbucks in making the trading, storing and transfer of cryptocurrencies more accessible. The combination of reputable investors and a federally-regulated instrument make their futures contracts a reliable derivative, which promises to be free of scams and fraudulent actions.

Advanced Bitcoin Trading

The launch of futures contracts which payout in Bitcoin is only the latest of a series of advanced trading instruments which are now available for the volatile asset. Trading platforms such as Plus500 offer a range of these products to their users, allowing them to benefit from their correct speculation, without needing to own the underlying asset.

76.4% of retail CFD accounts lose money

Register for Latest Updates & News

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

11 Biggest Sponsorships Deals for the Crypto Market in 2021

The global sports industry is looking to revamp its activities and recover from the after-shocks of the COVID-19 pandemic. Cryptocurrency platforms on the other hand have enjoyed immense growth and are searching for big platforms that can provide better brand visibility. That’s where sports and crypto make a perfect match with many global sports organizations […]

1 December, 2021

ChangeNOW Unveils a New Cashback Feature

ChangeNow offers crypto users smooth exchanges and doesn’t stop there. The exchange platform provides registered users a chance to profit from crypto swaps with cashback in NOW tokens through the ChangeNOW website. The cryptocurrency exchange and processing platform offer you an effortless way to turn your traffic into profit and boost your crypto journey. The […]

15 November, 2021

Celsius Casino is Raising the Temperatures with a Voluminous Game Lobby

Celsius Casino has become a go-to gaming destination for casino fans looking for an action-packed online gaming platform. The online casino boasts a robust game catalogue with over 4,000 games. The extensive game portfolio caters to Slots, Table Games, and Live Casino fanatics and is powered by well-known providers such as Evolution Gaming, NetEnt, and […]

9 November, 2021

ChangeNOW Has Announced the Release of its Own Digital Wallet

Limitless and swift crypto exchange platform ChangeNOW has released its own non-custodial NOW Wallet, facilitating fiat to crypto purchases and reliable crypto transactions from the comfort of a mobile phone. NOW Wallet is available in beta version for both iOS and Android devices and allows users to transact with over 20,000 currency pairs, regardless of […]

29 October, 2021
BitPanda,Bonus,token

BitPanda Enhances Its BEST Rewards Programme

The EU-based cryptocurrency exchange, BitPanda, has improved its loyalty programme, BEST Rewards. It is now providing owners of its BitPanda EcoSystem Token (BEST) an additional 12% in potential revenue each year. Every registered BitPanda user who has BEST in his or her wallet and carries out at least one monthly trade will be eligible for […]

25 October, 2021
ChangeNOW,Decentralised,Fraud

ChangeNOW’s AML Action Lead To The Return Of $15M COMP

Earlier this week, ChangeNOW announced that it was able to identify and return 45,505 COMP back to Compound. The estimated value of this recovery is around the $15m mark. This remarkable achievement is further proof of the effectiveness of the exchange’s Anti-Money Laundering (AML) procedures. In an announcement made on ChangeNOW’s website, the company provided […]

6 October, 2021
CFD Trading Platform,eToro,Trading

eToro Lowers The FTD Minimum Across Several Countries

eToro, the social trading and multi-asset platform, has decided to lower the minimum first time deposit, or FTD. Until further updates, users who sign up today using the link below will be able to fund their trading account with as little as $50. This offer is only valid to users in selected countries. To participate […]

24 September, 2021
ChangeNOW,Cryptocurrency,Investment

ChangeNOW Launches The NOW Tracker App

The young, but fast-growing online cryptocurrency exchange, ChangeNOW, has just announced the release of its latest product. The NOW Tracker is a free asset management app that lets users keep track of their coins and tokens across different wallets. Available on Google Play and the App Store, NOW Tracker is flexible and functional. This solution […]

9 September, 2021