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.
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
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
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.