Bakkt’s Bitcoin (USD) Daily Futures Contract Is close To Getting the Approval of the Authorities

According to a recent report on the Wall Street Journal, the Bitcoin (USD) Daily Futures Contracts of Bakkt is very close from getting the approval of the authorities. The digital currency trading platform has been working with the CFTC (Commodity Futures Trading Commission) to make sure that its business plan is compliant with the regulatory framework of the agency. A few outstanding areas are the exemptions for the trading platform to keep the Bitcoins of customers, cyber-attack problems that crop up and the financial liability should there be any hack event. Immediately the CFTC gives the project a green light, the public is given a period of thirty days to weigh in with comments.

About Bakkt

Bakkt was created by the parent firm of the NYSE (New York Stock Exchange) – Intercontinental Exchange. Bakkt was developed as a regulated digital currency trading platform. It provides a trading platform for institutional and retail investors to invest in products that are in accordance with regulators in the United States. The first product of Bakkt is a futures contract that is aimed at enhancing the liquidity of Bitcoin (BTC). The contract was initially scheduled to launch on the 12th of December. However, the launch date was recently shifted to the 24th of January 2019. Kelly Loeffler – the CEO of Bakkt – said that the launch was rescheduled due to the interest and work required to get everything in place.

Bakkt Bitcoin (USD) Daily Futures Contract Will Be Listed for Trading on January 24, 2019

The new Bakkt’s Bitcoin (USD) Daily Futures Contract will be listed on ICE Futures U.S. Inc. for trading on the 24th of January after it gains regulatory approval. The timeframe for the new listing will provide clearing members onboarding and customer with more time before the start of warehousing and trading of the new contract. The future of Bakkt is seen as a game-changer in the digital currency industry and it will provide a platform for a higher level of participation from Wall Street. The platform will deliver Bitcoin (BTC) to investors of the futures contracts physically, and this would have a significant effect on the supply and value of Bitcoin (BTC). Bitcoin (BTC) Price Today – BTC / USD
Name Price
bitcoin
Bitcoin
$10,665.004.71%
Alex Krugar – a well-known digital currency trader – said when the futures of Bakkt is launched, it will result in a massive bull run for Bitcoin (BTC) for the first three months of 2019. While the approval of the future contracts of Bakkt will cause a massive spike in the market, the rejection of VanEck’s Bitcoin (BTC) ETF (exchange-traded fund) could cause prices to crash. While Krugar believes the futures of Bakkt will have a strong impact on the market, Jake Chervinsky – securities lawyer – believes that the potentials of Bakkt’s futures could be overestimated. Chervinsky said: “Many believe that the launch of Bakkt’s futures is now a full-fledged narrative for how and when the bear market will come to an end. This is also similar to an exchange-traded fund for Bitcoin (BTC) – a trusted channel to attract institutional funds into the crypto space but without all the issues of SEC approval.” Bakkt appears to have everything under control concerning the launch of its futures contract. However, the primary worry of the firm is the adoption of digital currencies by top merchants such as Microsoft and Starbucks. But the CEO of Bakkt said that regulation comes first before merchant adoption.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.