The much-anticipated crypto trading platform is finally launching on Monday, September 23rd, to a number of quite high expectations. Others, however - not as high.
Announced back in August 2018, after being delayed twice due to regulatory issues, Bakkt is bringing its products to the Cryptoworld on Monday. It started its futures back in July, and the two futures contracts to be listed are:
- Bakkt Bitcoin (USD) Daily Futures – will enable customers to transact in a same-day market
- Bakkt Bitcoin (USD) Monthly Futures – will enable trading in the front month and across the forward pricing curve.
It’ll be the first platform to allow physically-settled Bitcoin futures for the two offerings, while the customers' BTC will be stored in the Bakkt Warehouse. Additionally, Bakkt’s cold and hot wallets are covered by a USD 125 million insurance policy, their FAQ states.
Bakkt is backed by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, and as such is a source of some great expectations within the Cryptosphere and outside of it. It’s commonly perceived as a step for traditional investors into crypto, or as a bridge between the old and the new financial markets thanks to its fully regulated Bitcoin trading offering, all of which could lead to major onboarding of institutional buyers and potentially help the adoption of Bitcoin and digital assets in general.
Bakkt has for its partners and investors a number of major companies, such as Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Starbucks, Horizons Ventures, and others.
A lot of people also see Bakkt’s physically-delivered Bitcoin futures as a game-changer for the world’s number one crypto. What it means is that unlike cash-settled bitcoin futures, institutional investors will hold physical bitcoin in their portfolios, delivered upon maturity. Hence, they’ll be holding actual bitcoin. Additionally, Bakkt Warehouse will enable investors to store their crypto with a regulated third-party service, which should ease their concerns about risks.
Tom Lee, the co-founder of the research firm Fundstrat, for example, tweeted that he’s “very positive on Bakkt and its ability to improve trust with institutions to crypto.”
Additionally, many people seem to expect Bakkt to have a good start, which would be bullish for Bitcoin. But the opposite is also true – should they fall short, BTC might be seeing a bear instead.
Product specs for the @bakkt monthly futures contract.
Final settlement: Physical delivery in the Bakkt Warehouse.
What does this mean?
It means your gains will be paid out in BTC, not USD.
This fact is still not digested by most.
34 days to go. ?? pic.twitter.com/BmzMY2Mntk
— hodlonaut????? (@hodlonaut) August 20, 2019
The common sentiment of the general public is likely still that ALL crypto is a joke/scam. Will BAKKT finally convince the USA at least?
Or are we too stubborn?#btc #bakkt
— ????TheRippening???? (@The_Rippening) September 20, 2019
Please stay calm. Look at the $BTC line chart and this all makes sense. We'll probably bounce right of the support the day #bakkt goes live and moon from there. I wish. pic.twitter.com/kkpay12rjP
— B I T A R T (@BITART018) September 19, 2019
Other people, however, are not this optimistic. Some are wondering how much BTC Bakkt has on-hand, some say that BTC will drop on the day of the launch, some don’t think Bakkt will have much of an impact overall, and some have been calling for a dump on news.
BTC's so flat as we approach Bakkt launch date on 23rd Sept.
What's gonna happen?$BTC #Bitcoin
— Squeeze (@cryptoSqueeze) September 16, 2019
Bakkt?
— dark pill (@DanDarkPill) September 16, 2019
Meanwhile, recent news show a somewhat mixed picture of the institutional investors. For example, the Chicago Mercantile Exchange (CME Group) intends to double its monthly Bitcoin futures trading cap to BTC 10,000 (USD 102 million). At the same time, the recently launched VanEck SolidX Bitcoin Trust, aimed at the institutional investors and marketed by some as a "limited Bitcoin ETF," still has only USD 40,500 in assets.
In the meantime, with many anticipating a price breakout, Bitcoin moved above the USD 10,000 mark again after dropping into the high USD 9,000s on September 19. It’s currently (12:24 AM UTC) trading at USD 10,217, having appreciated 3% in the last 24 hours, but dropping 1.3 in the past week.
