Is Bakkt's arrival likely to change the crypto industry?
As we all know, Bakkt Bitcoin (BTC) futures are planned to be launched on December 12th. Many experts consider it as the most anticipated crypto event of the year, as it has a great potential to significantly affect the BTC price in a positive way, at the same time it might contribute to the first cryptocurrency’s popularization. But is there a chance for Bakkt to be helpful and strong in a long-t
The ICE-issued document which reveals details about the platform states that so-called “physical” backing the futures contract will take place in the “digital asset warehouse” created by Bakkt and ICE in cooperation. According to the source familiar with the situation, the list of partners contains Microsoft, multinational technology company, Starbucks, American coffee company and coffeehouse chain, and Galaxy Digital LP, multi-service merchant bank.
As it was announced, the futures will be routed through ICE Clear U.S. which now claims to be one of the leading clearinghouses, which is a real advantage for Bakkt’s future clients and traders. The financial giant stated that clients will be offered a “one-day delivery”:
“Each futures contract calls for delivery of one bitcoin held in the Bakkt Digital Asset Warehouse, and will trade in U.S. dollar terms. One daily contract will be listed for trading each Exchange Business Day.”
The company plans to turn the platform into a shop where customers are free to buy, store, sell and spend various digital assets in a complete, decentralized and independent ecosystem. Therefore, investors will be satisfied with the futures, which will reduce the amount of tradable bitcoins in circulation and likely cause a slow, but positive changes in the market.
Also, as experienced cryptocurrency reporter and analyst Joseph Young has noticed, there is a great chance that the upcoming launch will attract multiple investments in the field and therefore entice the U.S. Securities and Exchange Commission (SEC), pretty conflict of late, to change their viewpoint on the market. Over the past few months the SEC has been criticising the blockchain and crypto industry, saying that it lacks consistent liquidity, investor protective measures and many other necessary features. The Commission used this a motive to reject Bitcoin-backed ETFs.
Many crypto enthusiasts claim that this arrival will significantly strengthen the industry, independently in SEC’s point of view.