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Bakkt says bitcoin futures testing to begin in July

Credit: REUTERS/Dado Ruvic

Bakkt, the startup cryptocurrency platform affiliate of New York Stock Exchange-owner Intercontinental Exchange Inc, said on Thursday it would begin letting users test two physically-settled bitcoin futures contracts on July 22.

By John McCrank

NEW YORK, June 13 (Reuters) - Bakkt, the startup cryptocurrency platform affiliate of New York Stock Exchange-owner Intercontinental Exchange Inc ICE.N, said on Thursday it would begin letting users test two physically-settled bitcoin futures contracts on July 22.

The crypto-platform, which has faced regulatory delays since ICE announced plans for the new venture last August, said trading was expected to begin sometime in the second half of the year. Bakkt still needs regulatory approval of its custody warehouse, where the digital assets will be stored.

Bakkt aims to draw more traditional financial institutions into the cryptocurrencies space and it has partnered with ICE's clearinghouse and futures exchange to bring new products to the market. The futures will be listed on ICE Futures U.S., cleared at ICE Clear U.S., and physically delivered to Bakkt's warehouse.

Exchange operators CME Group CME.O and Cboe Global Markets CBOE.Z already offer bitcoin futures in the United States, though Cboe's last contract settles this month and has not been renewed.

Unlike CME and Cboe's cash-settled futures, Bakkt's contracts will be physically settled, meaning bitcoin will be delivered to the Bakkt warehouse when the contracts expire.

(Reporting by John McCrank Editing by Susan Thomas)

((john.mccrank@thomsonreuters.com Twitter @jmccrank; 1 646 223-6643; Reuters Messaging: john.mccrank.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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