Categories: Editors' Picks

5 Reasons Why Bakkt’s Launch is BIG News for the Crypto Community

The news of Bakkt’s September 23 launch has broken the crypto internet. The market is all green with Bitcoin alone has gained over $600 in…

advertisement

The news of Bakkt’s September 23 launch has broken the crypto internet. The market is all green with Bitcoin alone has gained over $600 in the last 48 hours. Crypto Twitterati has welcomed the news with a shower of excited tweets.

Advertisement

To give you perspective, Bakkt is a bitcoin futures exchange and digital assets platform founded by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE). Several major organizations including Boston Consulting Group (BCG), Microsoft and Starbucks are working to develop the exchange.

After having made the crypto community wait for a year since ICE’s announcement of its plans to create the platform, Bakkt is finally set to launch in September, as per Bakkt’s medium blog.

Here are 5 reasons why Bakkt’s launch is such a big deal for the crypto community

  1. Bakkt’s Wall Street Connection – Bakkt has been founded by the creator of the largest stock exchange in the world, the New York Stock Exchange. This bold initiative may also inspire other major stock exchanges in the world from crypto-friendly countries like Japan and Hong Kong to venture into offering regulated platforms for crypto-based assets.
  2. Bakkt’s Credibility – One of the reasons why new investors are reluctant about including crypto-based assets in their portfolio is the lack of trust in existing platforms. Bakkt, owing to being equipped with the New York state trust charter from the New York State Department of Financial Services (NYDFS) and approvals from Commodity Futures Trading Commission (CFTC), and its association with some of the biggest companies of the world, overcomes the obstacle of building trust. Thus, the platform is bound to attract investors that want to play safe in the cryptocurrency space.
  3. More Institutional Investment – The cryptocurrency space has been bereft of institutional investors because of the same reason – lack of institutional-grade infrastructure. According to bitcoin enthusiast Jake Chervinsky, ICE brings great credibility to the crypto space for large institutions. When institutional investors enter the crypto space, sooner or later, crypto-based assets are bound to get recognition as mainstream financial vehicles.

  4. Mainstream Adoption – Among Bakkt’s objectives is to facilitate seamless cryptocurrency usage in daily life. Though Bakkt hasn’t revealed a lot about its plans for achieving this objective, but word on the street is that Bakkt will help customers switch from paying with cards at malls and online to scanning their Bitcoin apps. One place where consumers will definitely be able to spend their bitcoin is Starbucks. According to  Maria Smith, vice president, Partnerships and Payments for Starbucks, “As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted, and regulated applications for consumers to convert their digital assets into U.S. dollars for use at Starbucks.” This development, which will enable consumers to avail Bitcoin’s utility as a currency, is a major step towards increasing bitcoin adoption.

  5. A Gateway to a Basket of Bitcoin-based OfferingsBakkt aims to enable major money managers to offer Bitcoin-based financial vehicles including mutual funds, pension funds, and ETFs, as highly regulated, mainstream investments. Bakkt’s vision can only be fulfilled if the US’ regulatory bodies are on the same page as Bakkt about digital assets. The SEC has been delaying its decision on proposed Bitcoin ETFs since the last year, and even now, it has pushed its decision to October. With the launch of Bakkt, the SEC might expedite its process of reviewing bitcoin-based assets.

How do you think that Bakkt will influence the cryptocurrency market? Share your views with us in the comments.

Summary
Article Name
5 Reasons Why Bakkt’s Launch is BIG News for the Crypto Community
Description
The news of Bakkt’s September 23 launch has broken the crypto internet. The market is all green with Bitcoin alone having gained over $600 in the last 48 hours. Crypto Twitterati has welcomed the news with a shower of excited tweets.
Author
Publisher Name
Coingape
Publisher Logo

To get the daily price analysis, Follow us on TradingView

Vinnie Singh

All things Blockchain & Crypto. 3 years for writing for Crypto Publications, ICOs and Blockchain cos. Book Junkie. Travel Freak. Food rules my mood. Enough said. Follow me on twitter @vinniesingh7 or mail me at vinnie[at]squadx.io

Recent Posts

Bitcoin [BTC] at the Cusp of a Mega Bull-Phase: Leading Analyst

Bitcoin [BTC] price has arrived at a major resistance level around $12000. Leading on-chain analyst,…

1 hour ago

Will High Gas Fees on Ethereum [ETH] Put an End to DeFi Bull Run?

The GAS fees on Ethereum is surpassing 200 Gwei as DeFi yield farming boom continues.…

7 hours ago

Compound Price Analysis: COMP/USD In A bullish Phase Despite Rejection From $247 Monthly High

Compound price rose to highs close to $250 but retreated to confirm the 61.8% Fibo…

18 hours ago

Bitcoin Price Forecast: BTC/USD Back To The Drawing Board? Could Retest $11,000 Before Attacking $12,000 Again

Bitcoin freefalls following a failed attempt at containing gains above $12,000. BTC/USD drop towards $11,000…

19 hours ago

Are Bitcoin And Gold Headed to The Worst Drop Ever? Covid19 Vaccine, Tax cut & More

Bitcoin [BTC] and gold are witnessing massive drops as Russia announces world's first COVID-19 vaccine…

1 day ago

Breaking: Publicly Listed Firm MicroStrategy Purchases $250 Million Worth Of Bitcoins

Publicly traded business intelligence firm MicroStrategy bought $250 [~21,454 Bitcoins] Million worth of Bitcoin today…

1 day ago