The Intercontinental Exchange has just announced its first block trade of the newly offered Bakkt bitcoin monthly options contracts submitted to ICE Futures US.
First Block Bitcoin Options Trade
According to the announcement the Bakkt Bitcoin Options settle into the underlying BTC monthly futures contract two days prior to expiry. Galaxy Digital Trading and XBTO executed the inaugural trade. A block trade is defined as a privately negotiated trade with a certain minimum size threshold.
The primary difference between futures and options is that the contract holder is obligated to sell a futures contract on the expiry date. With options there is no obligation to sell the contract on expiry, giving greater flexibility which may impact market prices.
The report added that price discovery is completely regulated and has no exposure to…