Bakkt announced that it was testing its Bitcoin futures platform a few weeks ago and the launch was set for Q3. This highly anticipated launch of the Bitcoin futures platform is now facing a regulatory hurdle that could potentially delay the launch.
Bitcoin (BTC) Price Today – BTC / USD
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Bakkt is a subsidiary of the Intercontinental Exchange. The company awaits the approval of Bakkt Trust Company from the New York Department of Financial Services. The platform cannot operate as a qualified custodian without this trust. It also cannot play a crucial role in the plan to settle contracts in Bitcoin.
Bakkt Addresses Concerns Through A Letter
Bakkt sent out a letter recently which highlighted the efforts of the company to gain approval. It also contained the outlines for the process of crediting customers with bitcoin.
The letter reads,
“Deliveries under the Bitcoin Contracts will be made through Bakkt Trust Company LLC (the “Warehouse”), which has applied to be licensed as a limited purpose limited liability trust company by the New York State Department of Financial Services. The Bitcoin Contracts require that market participants deposit with the Warehouse the Bitcoin necessary to cover their delivery obligations under short positions in Bitcoin Contracts that go to delivery.
The Warehouse will credit to the appropriate Account Bitcoin transferred by or on behalf of the market participant to the Warehouse. With respect to such Bitcoin, the Warehouse will be recorded as the holder for purposes of the public blockchain or other ledger constituting the ‘external network’ for such Bitcoin, and the Warehouse will in turn credit such Bitcoin to the Account of the market participant on its own books and records.”
Lots of Institutional Adopters Are Ready To Start Using The Platform
ICE Futures U.S will certify Bakkt futures contracts, Bakkt says. It will be under the rules of the Commodities Futures Trading Commission.
Sam Doctor, a market research analyst from Fundstrat was in attendance during Bakkt’s Institutional Digital Asset Summit which held in New York City. Doctor said it appears a large number of institutional adopters are already waiting to start using the Bakkt program when it launches.
Bakkt Launch Initially Set For Q3
The initial date for the launch of the bitcoin futures platform had not been officially set. However, it has been scheduled to hold sometime in Q3 this year. However, sources say the company may not stick to the deadline since it still awaits approval from the New York Department of Financial Services. It needs this approval to run a Bakkt Warehouse.
Sources familiar with the matter say that even though the future us different from the warehouse, the product is dependent on the warehouse. The testing of the futures started earlier in the month and presently, lots of customers around the world are participants in the tests daily.
Some analysts believe that the launch of a bitcoin futures platform will not impact bitcoin price in any way. The recent price fluctuation of Bitcoin supports this prediction. The largest cryptocurrency by market cap has failed to maintain the $10k level for a few weeks now. It has fallen below the psychological level several times in the past few weeks. Analysts believe that it could continue to surge to $20k if it holds.
Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.
