The Wall Street Journal is reporting Bakkt, a subsidiary of Intercontinental Exchange (ICE), appears ready to bring the first ever Bitcoin-settled futures contract to legacy finance with full support from regulators. Bitcoin (USD) Daily Futures Contract is supposedly well on its way to regulatory approval, ushering in what most believers say will be nothing short of a revolutionary new way to do business on Wall Street.
Bakkt On Target for Late January Roll Out
It’s safe to write institutional investors high on the gains of 2017 sobered up quite a lot during the great bear that is 2018. This was to be the year Wall Street entered crypto after Chicago Merc and Cboe made their first steps at the end of 2017 about this time. And then the broader crypto market collapsed and really never bounced back.
Of institutional rumors this year, ICE’s Bakkt (as in “backed” by something) was a small bright spot, but then it seemed even they were spooked by conditions, and pushed their roll out from this month to next.
Reports have now surfaced the well-positioned company has been working with the Commodity Futures Trading Commission (CFTC) to finally bring their physically-settled daily futures contract to market. And regulators appear to be signing off.
For most Wall Street institutions, custody and security have been a deal breaker. Headline after headline about hacks didn’t help ease fears, and so Bakkt has had to work closely with regulators to reduce liability and increase confidence.
The company is the product of ICE, which also owns the New York Stock Exchange (NYSE). They know regulations and how to navigate that world. ICE will list the Contract late next month, and many analysts believe it will bring more liquidity to the crypto market as Wall Street finds the Bakkt platform. Both the supply and price of bitcoin will be impacted, say financial experts, and others are calling for a bull run in Q1 on BTC as a result.
Those, at least, are the theories. Bakkt has also promised partnerships with giants such as Microsoft and Starbucks, and so hype is high. They’ve even hired crypto experts from such exchanges as Coinbase. Others familiar with both worlds, crypto and Wall Street, agree the company’s entrance into the space will alter things, but not necessarily in a positive direction, as Caitlin Long explained to CoinSpice on our podcast, Milk.
SOURCE: The Wall Street Journal
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