Intercontinental Exchange, Inc. (NYSE:ICE) recently announced the first block trade of Bakkt Bitcoin (USD) Monthly Options (BTM) submitted to ICE Futures U.S.
In a release, Trabue Bland, President of ICE Futures US, stated:
“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.”
A block trade is a privately negotiated trade with a certain minimum size threshold, which is submitted to the Exchange and cleared through ICE Clear US. Typically, this is the realm of institutional money. According to ICE, the first trade was executed between Galaxy Digital Trading and XBTO.
“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.”
Paul Eisma, Head of Trading, XBTO added:
“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.”
Institutional money moving into Bitcoin and other digital assets is frequently mentioned as a catalyst for greater sector growth.