Bitcoin futures denominated in bitcoin?

In a blog post last Friday, Bakkt revealed the details of its bitcoin futures and warehousing plan.

One year ago, we announced our ambitious vision to bring institutional infrastructure to digital assets with an end-to-end regulated marketplace. That vision will be realized on September 23 when Bakkt launches custody and physically-delivered daily and monthly bitcoin futures contracts in partnership with ICE Futures U.S. and ICE Clear US.

Our contracts have already received the green light from the CFTC through the self-certification process and user acceptance testing has begun. Withapproval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures.This offers customers unprecedented regulatory clarity and security alongside a regulated, globally accessible exchange in a market underserved by institutional-grade infrastructure.

Put simply, as CoinDesk's Omkar Godbale notes, BTC futures trading on Bakkt will not rely upon unregulated spot markets for settlement prices and the party will receive delivery of bitcoins from the Bakkt Digital Asset Warehouse at the end of the contract period.

A promise to buy or sell bitcoin at some future price is thus enforced. OK. I think this is it, basically an S/L for bitcoin with likely a small marke risk for the trust company. 

Make i a bit larger risk. The rule is, it the S/L trust keeps a quarter point market risk, by contract, then going bankrupt, the trust would spread its losses rather innovatively, with little arbitrage opportunity. This is exactly what we want.

Physical delivery of bitcoin simply means the trust will enforce a bitcoin ledger call at contract termination. Isdn't that market risk cheating? The pit boss can carry a positive or negative bitcoin balance relative to the bitcoin ledger.  It is not cheating if it is a known, bettable risk.  But it is the S/L business, you will have a scofflaw queue due to cash in advance and learning leaks.

So, make a bitcoin S/L business, bitcoin deposits and loans; cash in advance. Secure ID simplifies.