The Bakkt Warehouse custodial service will be open for deposits from September 6, announced the Bakkt market operator. After being given the regulatory green light to start wider trading from September 23, the market operator has planned to open wallets for its secure custody of Bitcoin (BTC).
The Bakkt physical delivery after the expiration of futures may be the first instance of a fully regulated cryptocurrency transaction.
The launch of the Bakkt exchange has helped boost the expectations for a BTC price rally. However, the most recent announcement coincided with a crash of BTC prices, down from the $10,200 level to under $9,600.
Holding BTC has multiple complications, and it is unknown how Bakkt would oversee the transactions. In its 10-year history, BTC has acquired a history of scams and illegal uses. At least a part of the addresses and coins have been tainted, and Bakkt will face the challenge of BTC used by dark market participants or even terrorists.
There is always the possibility of buying brand-new BTC from miners, which do not have a transaction history related to illegal activities.
Bakkt will launch its daily and monthly BTC futures at a time when the leading coin dominates the markets, and has become a leading source of growth for 2019. At the same time, older altcoins are losing their appeal, with much deeper corrections.
The Bakkt exchange will potentially invite large-scale investors. However, the current market position of BTC may suffer. The Bakkt launch is seen by some traders as having the potential to depress BTC prices:
Whatever the effect, Bakkt adds to the current unique situation for BTC adoption. In 2019, trading volumes have recovered and mining is near its all-time high levels. Regulatory scrutiny is also at an all-time high.
The approval of Bakkt does not guarantee another milestone for BTC, the creation of a US-based exchange-traded fund (ETF). The creation of funds is closely watched by the US Securities and Exchange Commission, which generally curbs the creation of ETF based on overhyped ideas and trends.