19 August 2019

Daily Market Commentary: about the Bakkt BTC futures contracts

Patrick Heusser

Patrick Heusser

Senior Trader bei Crypto Broker AG

Über den Autor

So Bakkt has finally communicated the launch date of their one-day and monthly physical delivered futures contracts.

Here is the announcement from their CEO Kelly Loeffler

You might be asking yourself why the market needs another platform where you can trade BTC futures. This question is sort of legitimate as the biggest issue the crypto asset market still has is the fragmentation of liquidity.

But this contract is a game changer, especially for institutionals. Let me elaborate:

– First and foremost it is a fully regulated exchange by the highest standards.

– It is a brand new product. So far there is no „physically“ settled BTC future.

– Additionally, Bakkt is offering a custody service, which should give institutionals the much needed secure and regulated infrastructure to physically hold BTC.

Another nice side effect of a physically settled future is that you do not need any index providers. There is no conversion happening at the maturity of the futures contracts. The number one argument of any institutional trader is the price manipulation on those unregulated exchanges that are being used for references and fixing rates of many products, including the CME futures. This is not an issue anymore with the Bakkt futures.

Here you will find the product specifications for the Bakkt™ Bitcoin (USD) Monthly Futures Contract.

BTC$ 15min Chart (24 hour outlook):

I am calling the intra-day range 10.3k – 10.5k. Any breakout either way should give some impulses for another $150-250 move. But bear in mind the bigger picture I was talking about over the last few days. There is a big potential triangle. We bounced a few times off of that lower leg, which comes in at around 10.1k. We need to see a decisive move higher soon, otherwise I will lose faith in this potential pattern. Obviously, a break lower (below 10k) will invalidate the pattern completely.