Bakkt Could Get CFTC Approval For Bitcoin Futures Within A Week
The Bakkt Bitcoin (BTC) Daily Futures announcement made on Monday regarding its December 12, 2018, launch date could be confirmed by the CFTC next week.
The Bakkt Bitcoin (BTC) Daily Futures announcement made on Monday by the Intercontinental Exchange (ICE) regarding its December 12, 2018, launch date could be confirmed by the CFTC next week, declares the unnamed but supposedly well-informed source.
The same source backs their claims with the fact that Bakkt officials have been frequently meeting with the regulator in order to ensure the green light for the December 12th launch date.
If this announcement becomes official, Bakkt could be the first platform to launch a physically delivered Bitcoin Futures Contract, so, according to the source, even Goldman Sachs is considering to use the platform.
Prior to the latest report, the owner of the New York Stock Market, Intercontinental Exchange (ICE) scheduled the launch of Bakkt Bitcoin Daily Futures for November, which was eventually delayed due to the pending approval request.
The unsuccessful start of Bitcoin Futures
Bakk isn’t the first platform to offer futures but the first to offer physically-backed contracts.
Cboe and CME Group Inc. have been providing Bitcoin futures contracts for approximately 10 months already, and according to Forbes, with little success.
Translated into the exact numbers, during this year’s Q3, these two services managed to trade only 9,000 Bitcoin Futures contracts per day combined.
“There have been more articles than volume,” stated Chris Concannon, Cboe’s COO three months ago when asked about the viability of their product.
Bakkt offers a little extra
However, Bakkt’s Bitcoin Futures are surrounded by a substantially greater amount of hype due to some notable differences. Their contracts are physically delivered.
That means that upon buying one USD/BTC Futures, one Bitcoin will be delivered into the customer’s account. Furthermore, upon the contract’s completion, investors will receive payments in Bitcoin instead of FIAT.
Cryptocurrencies will be held in the Bakkt Digital Asset Warehouse, and, upon the full launch of the platform, one daily contract is going to be available for trading each business day.
First contracts will be paired with USD, GBP, and Euro. In order not to re-live the same fate as its predecessors, Bakkt has also made some formidable acquisitions in the employment area.
Xbt.net already reported that Bakkt snatched up a former Coinbase executive, Adam White, who joined the company as a COO. White is known for his pivotal role in the department of institutional products, which can prove to be a major leverage point for filling up those order books.
Not everybody believes it’s positive
Despite the emphasized potential to bring back the crypto-market bulls, Bakkt’s initiative encountered more than a few skeptics.
Some standout individuals criticize this solution, claiming that it will ultimately slow down the adoption of cryptocurrencies and “hurt the industry’s reputation” by providing a way out for those who don’t want to physically control their digital assets.
Nevertheless, discussions about institutional investors have been everpresent throughout the cryptocurrency multiverse for a long time as something that will drive the price of Bitcoin towards the all-time high once again.
That is still the possibility nobody should disregard, and Bakkt seems to have a plan to make it happen as their CEO, Kelly Loeffler says:
“Institutions are looking for the trust, infrastructure and regulatory certainty that exists in ICE’s markets.”
Xbt.net is going to deliver every piece of news on the subject as we are sure that a big percentage of the community hopes that Bakkt will deliver.