Over the past few years, the Bitcoin futures ecosystem has grown at a remarkable pace, and it is something that is surely going to stay for years to come. Initially, these futures contracts had been launched by a handful of exchanges, but over the past year or so, the number has increased considerably.
In a development that will come as another massive boost to the Bitcoin and cryptocurrency ecosystem, the New York Stock Exchange’s owners, ICE, through its crypto exchange Bakkt has decided to launch futures contracts that will pay out traders in Bitcoins. The launch has gone through, and trading has already started in this new security. The very first trade was completed on Sunday.
Over the years, it has been noted by many experts that mainstream investors are often hesitant about investing in cryptocurrencies despite having an interest in them. The NYSE launched the new Bitcoin futures contract with the sole purpose of tapping into such investors. Intercontinental Exchange (ICE), which is the owner of the NYSE, introduced the security in its futures exchange on Sunday. The firm launch through its crypto exchange Bakkt, which is currently one of the best known and innovative cryptocurrency exchanges in the world.
The ultimate aim of many individuals in the crypto space is to ensure that retail investors and institutional investors find it worthwhile to invest in Bitcoin. Trading in cryptocurrencies and paying with them is perhaps the best place to start when it comes to attracting them. According to reports, this was the primary motivation behind the introduction of this product.
Over the past months, it has become abundantly clear that institutions are becoming more and more interested in Bitcoin as well as in the larger crypto space. If that is the case, then it is only natural that products are being introduced that could help bring them in and the introduction of Bitcoin futures is a step in the right direction.
Featured image: DepositPhotos © grejak