There is the possibility that Bakkt, the cryptocurrency futures platform created by the Intercontinental Exchange (ICE), may finally receive the approval for its BTC futures in the next 10 days. It all depends on whether the U. S. Commodity Futures Trading Commission (CFTC) decided to disapprove the futures or not.
They do not even need to actively approve it in order for it to pass, only not bar it. Obviously, even if the futures are actually passed, this does not mean that the company will have them ready in 11 days. The process is much harder than that.
Before being offered to the clients, these services also need to prepare their user acceptance testing, which is used to test the product before the market. A custody solution is also not yet fully developed at this moment. At the moment, the official date for the
Recently, the company also provided some more details about how the futures contracts will work as soon as they are properly launched. There will be two kinds of contracts, the ones settled daily or monthly. They will use tools in order to detect disruptive practices, too, in order to avoid wash trading.
The company has also affirmed that it will contribute with the sum of $35 million USD from its own money to counter risk waterfall of the clearinghouse and align its interests more with the rest of the market.
Another important development is that Bakkt is already working closely to the New York State Department of Financial Services in order to become a qualified custodian. The solution, according to the company, will be supported by compliance with the industry, proper cybersecurity and insurance as well.
At the moment, however, there is not a lot of information about how much of the process has been done. Because of this, some people are already wondering whether we can trust the proposed July 2019 timeframe for the launch.
Will Bakkt Really Launch Its Services In July 2019?
There are many doubts on whether Bakkt will pull the July 2019 launch off or not. For instance, they need local regulators from New York to approve the company. Also, as we’ve said, the road in order to get fully ready is also far from complete.
Being allowed by the CFTC is a great first step but not even that happened yet, we’ll still have to wait 10 days in order to actually discover what will happen. If this part of the problem is overcome, it is a great sign, but there are still other regulators and tasks along the way.
New York is possibly the hardest place in the world to start up a financial business and this may impact the release date. It is important to remember that regulators often drag their feet while deciding on crypto cases. The Bitcoin exchange-traded fund (ETF), for instance, seems to be in an eternal limbo.
In any case, even if we ignore the date, there is still a high probability that the launch will happen this year.