Cryptocurrency Enthusiasts Expect That Bakkt Would Help The Market Stat a New Bull Run
As the virtual currency market is in a bear trend since the beginning of the year, several enthusiasts are waiting for a new bull run. One of the catalysts for this bull run could be the Bakkt platform that is being developed by the Intercontinental Exchange (ICE).
Bakkt is expected to start offering physically deliverable Bitcoin futures on December 12. With this platform going to be launched in the near future, individuals believe that it can drive Bitcoin prices to new highs. The platform that the ICE is being developed aims at offering services to institutional investors.
The ICE operates almost every meaningful commodities exchanges around the world. Bitcoin is considered a commodity by the U.S. Commodities Futures Trading Commission (CFTC). As there are no institutional platforms in the market, it's expected for institutions to trust Bakkt more than others.
In a recent Twitter thread, Jake Chervinsky, a recognized and respected lawyer in the cryptocurrency space shared his opinion about Bakkt and how it will be influencing the market.
In this threat, he talks about what Bakkt is, how is it expected to work and the benefits for institutions. Nevertheless, he mentions that the platform might not be so positive for Bitcoin price, or at least is not so clear. The first phase of ICE’s developments will be the Bakkt platform for institutional investors that want to have access to the cryptocurrency market.
He then explains that there is a second phase that has not yet been unveiled. Chervinsky says that the next development related to the ICE in the cryptocurrency market could be a platform for commercial issues rather than for speculative investment for institutions.
If Bakkt is able to offer cryptocurrency services to the masses, including an agreement with Starbucks for customers to pay there with Bitcoin, the effect could be very positive.
At the same time, the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE), did affect the market in the short term. Indeed, the market reacted more as ‘buy the rumor, sell the news.’ Since the CME was launched at the end of the last year, Bitcoin has lost more than 65% of its price.