Bakkt to launch options for its bitcoin futures in December

Bitcoin derivatives provider Bakkt has announced the launch date of an options contract for its bitcoin futures. The firm will launch the first regulated options contract for bitcoin futures on Dec. 9. Options on futures contracts give the purchaser the right to buy or sell a specific futures contract at a predetermined price at the option's expiration date.

Earlier this month, The Block was the first to report on Bakkt's plans to launch options tied to bitcoin.

According to Bakkt CEO Kelly Loeffler, the new contract product is based "on customer feedback and is designed to hedge or gain bitcoin exposure, generate income, and offer cost and capital efficiencies." Bakkt Bitcoin Options contract "represents another important step in developing this asset class for institutional investors, their customers and investors," adds Loeffler.

On Wednesday, Bakkt futures volumes hit an all-time-high of ~$4.81 million—the figure is more than the total volume over the nine previous trading days combined.