ICE’s Bakkt Bitcoin (BTC) Daily Futures Contract All Set to Launch Pending CFTC Approval
If a recent news piece published by the Wall Street Journal is to be believed, Bakkt‘s Bitcoin Daily Futures Contract is all set to go live in the coming few days. As per the media outlet, Bakkt has received a “green light” from all of the required regulatory authorities, as a result of which the above mentioned offering could enter the market fairly soon.
It is being reported that in order to remain fully compliant with the existing economic setup of the United States, Bakkt has been working closely with the Commodity Futures Trading Commission (CFTC)– so as to ensure that the company doesn't run into any major hurdles later down the line.
Some of the core areas that the folks over at Bakkt have been especially careful in regards to include:
- Maintaining a high level of security for a customer’s Bitcoin holdings
- Keeping a close eye on cybersecurity issues that can potentially crop up in the future.
- Ensure financial liability in case some hacking related issue arises later.
Lastly, it is worth noting that once the CTFC decides to give the project a thumbs up, potential investors (as well as the public at large) will also be given a period of 30 days to weigh in on the matter with their suggestions and comments.
Brief History Of Bakkt
As many of our readers already know, Bakkt has been devised from scratch by the Intercontinental Exchange (the entity also responsible for governing the New York Stock Exchange (NYSE)).
In terms of what Bakkt is offering, the platform aims to serve as a “regulated trading avenue for a host of different altcoins”. To be even more specific, it can be used by retail as well as institutional players to invest in digital products that are compliant with regulators within the U.S.
In this regard, Bakkt’s first commercial offering is going to be the aforementioned futures contract (which many market experts believe will help improve the overall liquidity of Bitcoin).
About The Futures Contract
While the contract was initially set to go public at the start of December, its launch has now been rescheduled for the 24th of January, 2019. On the matter, Bakkt CEO Kelly Loeffler was noted as saying that the delay had been caused because there was some more “work that had to be done”.
As per the envisioned plan, ICE Futures U.S., Inc. is now set to list the new Bakkt Bitcoin (USD) Daily Futures Contract to the public this coming Thursday (subject to regulatory approval).
What Can We Expect From All This?
While not an assured thing, many economists have been commenting that the introduction of these contracts could be a real game changer for the crypto sector at large. This is because Bakkt will physically deliver Bitcoin to the investors of these futures contract— something that many people believe will greatly affect the overall supply and price of bitcoin.
Additionally, it is also worth mentioning that respected analysts such as Alex Krüger have time and again said that upon their release, Bakkt’s futures will help usher in a new bull run for BTC. Not only that, Kruger has also been quoted as saying:
“Possible outlook for BTC: First, the bull run on BAAKT & renewed ETF approval narrative early 2019. Second, ETF denied Feb/27, massive crash, goodbye 6k, hello 4k, cleanse all weak hands Lastly, having 2020 narrative and re-adjustments lead to a sustained bull run for the rest of 2019 & 2020.”
However, while Kruger is highly optimistic about the future of crypto, there are people like Jake Chervinsky who strongly believe that the everybody seems to be overestimating the potential of Bakkt’s futures. Elaborating further on his hard-edged stance, Chervinsky noted:
“In the minds of many, Bakkt’s launch has become a full-fledged narrative for when & how the bear market will end. It plays the same role as bitcoin ETFs as a trusted vehicle to bring that sweet institutional money into the space, but without all the trouble of SEC approval,”
While the launch of Bakkt’s futures contracts don't seem to be an issue to many at this point in time, one of the major sources of worry for many people moving forward is whether or not Bitcoin will be adopted (as expected) by various big name players such as Starbucks and Microsoft.