Bakkt Shares Why Bitcoin is the King of All Cryptocurrencies and Its Futures is CFTC Regulated
According to a tweet sent out by Bakkt’s official Twitter handle late yesterday afternoon, the Intercontinental Exchange owned entity still sees Bitcoin (BTC) as being the “alpha of the crypto sector”.
Not only that, the firm also stated that since Bitcoin is currently in control of a majority share of the total crypto market, it makes the premier asset an obvious choice for building Bakkt’s envisioned financial offerings upon.
We've been asked why we're starting with bitcoin. Here's why:
Bitcoin today accounts for over half of total crypto market capitalization and has been deemed to be a commodity, and its derivatives are regulated in the US by the CFTC… (1/2)
— Bakkt (@Bakkt) November 21, 2018
A Deeper Look At The Matter
At the start of this year, the US Securities and Exchange Commision (SEC) had pointed out that crypto assets such as Bitcoin that are currently being used in place of fiat assets could “not be classified as securities”. As a result of this, BTC’s status still remains as that of a commodity— thus making all of its derivative products subject to the purview of the Commodity Futures Trading Commission (CFTC).
With that being said, it is worth noting that at press time, Bitcoin still has the largest market cap of all the cryptos available in the altcoin space today. To elaborate further on this point, we can see that at the moment, Bitcoin controls over 53 percent of the total cryptocurrency market share— a statistic that has been enough for Bakkt to keep the cryptocoin in very high stead.
Bakkt Postpones Its Futures Trading Plans
Even though there are many benefits of issuing BTC futures contracts, a representative for Bakkt recently came forth and said that his firm “wasn't quite ready to launch such products yet”.
Additionally, Bakkt was previously scheduled to go live sometime in December, however, the company’s executive brass has now backtracked on its initial vision and has instead released the following announcement on their official website:
“The new listing timeframe will provide additional time for customer and clearing member onboarding prior to the start of trading and warehousing of the new contract.”
Lastly, even Bakkt CEO, Kelly Loeffler, came forth and said that the postponement was in part due to “help give the platform some time to work out all of its kinks”, thus ensuring a seamless launch during January of the coming year.
Just a few weeks before the onset of this latest bearish bloodbath, many from within the global crypto community were saying that a bull run was imminent during the last week of November. Even many technical indicators were favouring Bitcoin to make a price push by the end of this year— however, as we all know, that dream does not seem to be coming true anytime soon.