Intercontinental Exchange, Inc (NYSE: ICE), which operates global exchanges and clearing houses and provider of data and listing services, announced its first block trade of Bakkt ™ Bitcoin (USD) Monthly Options (BTM) submitted to ICE Futures U.S.
The first trade took place between Galaxy Digital Trading and XBTO.
“Based on our benchmark physically delivered bitcoin futures, these options contracts offer our customers a capital-efficient new tool for trading and for managing volatility, price risk and income generation,” said Trabue Bland, President of ICE Futures U.S.
Bakkt Bitcoin Options settle via the underlying Bakkt Bitcoin (USD) Monthly Futures contract, two days prior to expiry.
Price discovery for the contract happens in a federally regulated market. There is no exposure to unregulated bitcoin spot markets, according to a press release.
“We believe the development of the institutional market infrastructure leads to deeper liquidity in digital assets,” said Josh Lim, Head of Trading Strategy at Galaxy Digital Trading. “The advent of centrally-cleared bitcoin options on a regulated U.S. exchange is a major milestone for this market.”
“By launching bitcoin options at a major board of trade, ICE and Bakkt are providing invaluable instruments that professional investors and commercial hedgers need in order to properly manage risk in a rapidly maturing asset class. XBTO supports the evolving growth in non-linear institutional trading products coming to digital asset markets,” said Paul Eisma, Head of Trading at XBTO.
Such a block trade is negotiated with a certain minimum size threshold and submitted to the Exchange and cleared through ICE Clear US.
Alongside the launching of new products, the platform’s CEO, Kelly Loeffler, is reportedly going to replace Georgia Senator Johnny Isakson in the U.S. Senate.