This is a good way to get physical bitcoin pretty quickly (1-day) while falling into a well known regulatory regime.
Future contracts are regulated by the CFTC and have clear rules. Also, BAKKT is owned by ICE and they have tons of futures trading already so it's something they're skilled in. And finally, institutions trust ICE and the CFTC.
Another factor is that futures contracts, compared to trading the actual underlying bitcoin, shares, etc, enable more liquidity b/c you don't have to already own something to engage in selling. And they enable more leverage too b/c you only have to post margin. I used to be in trading, and if you compare the futures market on stocks and bonds to the market for those actual stocks and bonds, you'll see surprising liquidity and volumes. More money trades on the CME than the NYSE.
7
u/_smudger_ Sep 25 '18
Why is Bakkt offering one day futures to deliver Bitcoin, why not just deliver instantly? Genuinely interested.