TL;DR: According to CEO Kelly Loeffler, “on September 23 […] Bakkt launches custody and physically-delivered daily and monthly bitcoin futures contracts in partnership with ICE Futures U.S. and ICE Clear US.” The announcement comes a year after a lot of media hype and several previous launch claims, only for the firm’s highly anticipated institutional entrance into the cryptocurrency ecosystem to be pushed to a later date.
Bakkt Bitcoin Futures, Warehouse to Debut on September 23
“One year ago,” Loeffler began, “we announced our ambitious vision to bring institutional infrastructure to digital assets with an end-to-end regulated marketplace.” And since then, it has been a public relations juggle for Bakkt (pronounced “backed,” as backed by institutional clout) as it went through a few fits and starts. This time, the CEO stressed, is different.
“Our contracts have already received the green light from the CFTC through the self-certification process and user acceptance testing has begun. With approval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures,” she insisted.
Bakkt’s entire strategy rests upon taming cryptocurrency’s perhaps biggest hurdle for legacy investment, volatility. Markets within crypto are thought to be too easily manipulated due to their perceived lack of traditional safeguards or buffers, something which in finance circles is referred to as “regulatory clarity.” It appears as though Bakkt has gone about as far as can be expected in this regard, and is ready to face its marketing hype.
Loeffler continued, “And by now, digital asset markets are global and well-developed, but they have largely been designed to serve retail customers rather than institutional participants. Bakkt is bridging that gap to access this market and solve for factors that have slowed institutional participation. Whether concerns relate to a lack of liquidity, market quality and regulation, or issues with reliability, fees, and operational risks, we are addressing these challenges with a transparent offering,” she explained. They’ve mastered Proof of Social Media, Proof of Marketing, Proof of Regulation, and now cryptocurrency enthusiasts are awaiting the most unforgiving proof, Proof of Doing.
DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.
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