Highly Anticipated Bakkt Official Launch Is Getting Closer And Bitcoin Seems To Notice It
- Bakkt is getting prepared to launch a testing phase of its Bitcoin futures trading services
- In the future, Bakkt is expected to be launching its official platform
Bakkt, the platform that has been developed by the Intercontinental Exchange (ICE) during the last years is expected to be released on Monday, July 22nd. According to a report released by Trustnodes, Bakkt will be launching with an event at the NYSE Board Room.
Bakkt Gets Closer To Its Official Launch Date
Bakkt is going to be the first platform offering Bitcoin-settled futures contracts for users and professional investors. The company seems to have been granted an approval to start operating by the Commodities and Futures Trading Commission (CFTC) using self-certification. However, they have been negotiating with the CFTC for a long period of time.
It is worth mentioning that a bank or a trust company should hold deposits in virtual currencies. At the moment, there are no banks offering this service for cryptocurrencies, this is why Bakkt had to work in order to apply for a trust status from the New York’s Department of Financial Services (NYDFS).
Bakkt is expected to be a catalyst for institutional adoption of virtual currencies. Sam Doctor, Quant Strategist at Fundstrat, explained that Bakkt’s launch is expected late in the current quarter after the test launch on July 22nd.
Ari Paul, the CIO of Blocktower, considers that adoption of cryptocurrencies will come with a killer application or with improved UI to make crypto on-ramps safe. Ari Paul also considers that there are many positive things about cryptocurrencies that would allow attracting companies to the space.
In the summary about Bakkt, Sam Doctor wrote:
“Ari Paul views the inflation resistance and confiscation resistance of cryptos as a key value proposition and believes investors should look for an alternative to fiat. He also believes that within a decade you could see some countries close their borders to prevent capital flight via crypto by physically not allowing people to leave.”
At the moment, only Bitcoin (BTC) and Ethereum (ETH) gained regulatory clarity by the CFTC, which is very positive for the space. However, many questions remain unanswered by regulatory agencies in the United States. Other virtual currencies are also considered securities.
We think #Bakkt could be a huge catalyst for institutional participation in the #crypto market. Here are our takeaways from the Bakkt institutional summit yesterday at the NYSE… #bitcoin #BTC #ETH @fundstrat @fundstrat_ken pic.twitter.com/lkRylD1P4C
— Sam Doctor (@CryptoSamDoctor) July 19, 2019
Although this is not going to be a full launch and investors are going to be testing the new services, this is very important for virtual currencies and for the whole market as a whole. If everything goes as planned, Ethereum futures contracts are also going to be launched to the market.
During the last few days, Bitcoin behaved positively after dropping under $10,000. Now, the digital asset is being traded around $10,600 and it has a market cap of $189 billion, according to CoinMarketCap.