The institutional investors of the cryptocurrency have been looking for options that can help them break into the market. With companies like Bakkt and ErisX jumping in to the market, these investors are finding options in bitcoin derivatives products. Even though the conversation on the institutionalization of cryptocurrency often comes back to these two companies, the executives of each have much to say about their differences, according to The Block.
At an industry conference last week, CEO Thomas Chippas of ErisX and COO Adam White of Bakkt shared the stage to discuss the differences between what each one plans to offer. White, speaking on Bakkt, said that their project is more than offering institutional infrastructure like ErisX, CME, and Seed CX will offer, seeking out initiatives that they can support to promote adopting of crypto as well.
White believes that there needs to be more than just talking about investments and passing along the responsibility to someone else. Instead, he thinks that the crypto industry will see lower volumes, prices trending downward, and other negative changes because everyone is hoping for a change in blockchain that companies need to create. Companies also need to develop use cases that will stir up the market, which White believes that Bakkt is aiming to do as well, having already set up partnerships with Microsoft and Starbucks.
Speaking to The Block, Chippas said believes that Bakkt is looking to be both clearinghouse and payment processor, pitting themselves against Visa and Mastercard. However, the path ErisX is taking is more about offering a marketplace for trading commodities, while offering futures, giving the rest of the industry the chance to “go develop.”
The launch date for both ErisX and Bakkt is entirely uncertain at this point. Chippas noted that there is nothing he has heard in the direction of the regulator’s stance, though he said that the time is “probably not a problem,” even if it takes a few months.
White is not concerned either, recognizing that working with regulators is somewhat of a process. He added that it is important to understand the meaning of “hard fork,” “deep chain reorg,” and the differences in blockchains.