The good news keeps flowing for the top cryptocurrency as Bakkt has revealed that its set to test Bitcoin futures contracts this July. This is according to a blog post published earlier today and If all goes well the exchange will proceed to launch the long-awaited physically-settled Bitcoin futures products.
In the post, Kelly Loeffler, the CEO of Bakkt wrote that the exchange had worked closely with the U.S. Commodity Futures Trading Commission (CFTC), the body that is in charge of overseeing derivates products in the U.S, and come this summer they are going to test the Bitcoin futures contracts.
However, the exchange didn’t state the specific date the test will be launched, and also the CEO didn’t explicitly reveal if the exchange’s proposal to self-custody its BTC and clear through Intercontinental Exchange (its parent company) had been approved.
Instead, the Bitcoin futures exchange through ICE will self-certify its products, and this means the CFTC will have to assess whether or not Bakkt’s proposals are in violation of any laws and regulations. But, the products will move forward if the regulator fails to find any issues within a 10-day deadline.
However, this is quite different from asking the Commodity Futures Trading Commission to explicitly approve a product as the exchange was previously reported to be doing.
In 2017 when Cboe and CME first announced their Bitcoin futures contracts, they also self-certified their products. But, unlike the two exchanges, Bakkt is set to deliver actual Bitcoin instead of its cash equivalent when the contract expires.
According to a source with knowledge of the matter who choose to remain anonymous while speaking to CoinDesk, Bakkt doesn’t have a final launch date yet, but they will be cleared to proceed should the CFTC fail to raise any objections.
“We did self-certify. What the blog post effectively means is we filed with the CFTC, it’s two [contracts], a daily and a monthly and what happens is after 10 days, they can self-certify.”