Bakkt To Launch Bitcoin (BTC) Futures Very Soon, Pending Final Regulatory Approval
Bakkt, the Bitcoin futures platform created by the Intercontinental Exchange (ICE), is set to launch really soon, according to reports. The CEO of ICE, Jefferey Sprecher, has recently affirmed that the company is currently working in order to develop a regulated ecosystem that will cater to investors from all over the world.
He affirmed that the company is still waiting for the last regulatory approvals in order to move forward,but that they are pretty close of finally being able to launch their physically-settled futures. However, no specific timeline was provided during his speech.
It is now almost a whole year since Bakkt was announced and the platform is still not online. Bakkt was originally announced back in August 2018 with its ambitious plan of having physically-settled Bitcoin futures.
The initial launch date was December 2018 but the world has not been kind to ICE and Bakkt since then. Several problems with the regulators delayed the launch of the products considerably.
This caused some changes in the company’s plan, too. Initially, it was supposed to have its derivatives products overseen by the U. S. Commodity Futures Trading Commission (CFTC). Now, the derivatives will be self-certified after some headaches with the regulator.
One of the main points that are still being awaited by the company is the trust charter from the New York Department of Financial Services. As soon as the warehouse of the company is approved by this local regulator, the products will finally be out of the door and Bakkt will start officially.
Launching is not a guarantee of success, though. Companies such as TD Ameritrade and ErisX are also planning to offer similar products. LedgerX can also be a competitor in this area, so it looks like Bakkt lost the chance to have an edge on the competition by not being approved quickly enough.
In spite of all the trouble with Bakkt, ICE is doing just fine, though. The company had revenue of $1.3 billion USD in the second quarter of 2019. The Chief Financial Officer of the company, Scott Hill, affirmed that ICE continues to be interested in the crypto market and that he believes that the Bitcoin ETF will be a reality within the next few years.