Will the Opening of Bakkt Affect the Crypto Market as Much as We Anticipate?
Since the introduction of Bitcoin in 2008, many innovations have been engineered to drive the integration of the world’s first and most important digital currency to give holders the desired financial autonomy and liberty that is lacking in traditional fiat monetary system.
These innovation ranges from the creation of exchange for easy trading, to developing programs that would boost the speed and security of digital transactions. The ease with which these technological innovations become accepted are determined by a number of factors top of which is the reputation of the brains behind the new stride. In other words, crypto-enthusiasts would be more poised to accept a new technology and trust its potency if the creator is well known in government, financial sector or private business as the case may be.
In recent times, the heavyweights behind the New York Stock Exchange, The Intercontinental Exchange through is CEO Jeff Sprecher announced the plans to launch the BAKKT exchange, which is designed to bring a global acceptability to the broad use of Bitcoin especially by players who before now has shunned it. Shawn Tully, a fortune.com writer asserts that “the founding imperative for Bakkt will be to make Bitcoin a sound and secure offering for key constituents that now mostly shun it—the world’s big financial institutions.
The goal is to clear the way for major money managers to offer Bitcoin mutual funds, pension funds, and ETFs, as highly regulated, mainstream investments”. Bakkt is created to serve as a scalable platform for institutional, merchant, and consumer participation in digital assets by promoting greater security, utility, and efficiency.
Being a highly reputable financial organization, ICE has secured partnerships from other multinationals such as Microsoft and Starbucks who are largely in support of the Bakkt exchange. Bakkt has a future trading contract initial scheduled to commence trading in November 2018 but this timeline couldn’t be reached as well as the January 24th proposed date for the commencement of trading couldn’t work due to regulatory negotiations that hasn’t been finalized.
What Happens When Bakkt Finally Launches?
Even with the delays in the proposed launch, a lot of speculations is currently ongoing in the cryptosphere as to the veracity with which Bakkt would affect the existing market. With the support and partnership from major finally brokers and the aim to make Bakkt exchange a platform with the first physically delivered bitcoin futures and warehouse, subject to regulatory review and approval. This will enable access for institutional investors via regulated market infrastructure. Should this milestone be reached, it can be a viable replacement to credit cards. The Bakkt future trading would provide a centralized marketplace for participants to trade based on their view of bitcoin prices, gain exposure to bitcoin prices or hedge their existing bitcoin positions and as such, more control would be in the hands of traders.
ICE is a highly technologically focused company and surely, they would deploy their resources into making the Bakkt exchange and future trading a success when it launches. The regulatory fear that usually bring about sharp price fluctuations in Bitcoin prices may be eliminated and this would have an overall impact on other altcoins.
The uniqueness of cryptocurrency lies in the volatility. Investors and traders have built a framework to marginalize the market features to command great dividends. Many fears that the success of Bakkt would bring about not just oversight role by regulatory agencies but may take away the anonymity once enjoyed by owning crypto-assets. A typical stakeholder in the cryptosphere is all but uncertain as to what the future of the potency of cryptocurrency would be with Bakkt because as a major market leader, if Bakkt gets on starting with Bitcoin, others may arise using other cryptocurrencies. This is but a speculation but not surely the future most wants to surround their usage of cryptocurrencies.