The first contract changed hands on Sunday evening on ICE's futures exchange at a price of $10,115, according to Bakkt, the firm behind the contracts. Bakkt is an ICE-backed venture that aims to make trading and paying with cryptocurrencies viable for both retail and institutional investors.
The platform offers daily and monthly trading of physically settled bitcoin futures, to be processed through Bakkt's Bitcoin Warehouse, which began processing withdrawals and deposits at the beginning of September. Days later, Bakkt announced it had secured a $125 million insurance policy protecting bitcoin stored in its warehouse.
Traders who hold the ICE futures until they expire will either be paid in bitcoin or deliver bitcoin to Bakkt to settle their bets. Called physical delivery, the same process is used in other futures markets such as bonds, oil and cattle, which traders argue ensures a tight link between futures prices and the price of the underlying market.
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