The crypto platform of the International Continent Exchange (ICE), Bakkt, is set to go live on September 23. Because of this, several traders are already theorizing about the effects that this can have on the Bitcoin market.
Tom Lee, the prominent analyst of Fundstrat Global Advisors, has recently affirmed that Bakkt could have a very significant impact in the industry. According to him, it will be the first platform to offer physical BTC futures and will raise the trust in the market.
He also believes that the launch could impact prices in the short-term. BTC has just dropped below $10,000 USD and then went up again. Now, it is recovering slowly. With Bakkt, however, a bullish move could happen and this would raise prices.
Several institutional investors have still not entered the market and the Bitcoin exchange-traded fund (ETF) is still far from a reality, so Bitcoin is really in need of some legitimacy right now. For years, its stigma of being related to illegal activities has harmed its potential, but Bakkt may change that.
The U. S. Securities and Exchange Commission (SEC) chairman Jay Clayton has recently spoken about how Bitcoin is still in its infancy and the ETF will only be approved when the market is more trusted and regulated.
Not only Bakkt is fully regulated and created to cater to institutional investors, but it is backed by companies such as ICE, Starbucks and Microsoft. This will certainly be a huge step forward for Bitcoin.