The much-anticipated launch of the Bitcoin Futures platform – Bakkt could be just around the corner. The CEO of the parent company of Bakkt and NYSE (New York Stock Exchange), the ICE (or Intercontinental Exchange), Jeffrey Sprecher, noted in a directors meeting,
“Subject to final regulatory approvals, we plan to launch our physically-settled bitcoin futures in the very near future.”
The platform which was earlier scheduled from launch in December 2018 was delayed by regulations. Nevertheless, it launched its ‘beta’ platform the week before on 22nd July. However, according to sources, there are still some regulatory approvals pending. Sprecher also noted we are
“working to develop a regulated ecosystem that services the evolving needs of [participants] around the world,”
Furthermore, Mike Novogratz, a Billionaire investor and hedge fund manager, recently could have possibly spilled the beans on the definite timelines of the launch. He said,
Fidelity or TD Ameritrader working towards buying directly through you brokerage accounts. Bakkt which is I think is finally getting started within six weeks.
Bakkt plans to offer a futures contract that is settled using Bitcoin itself. This is being called a ‘moonshot bet’ which will transform how institutional money sees Bitcoin [BTC].
Nevertheless, recent reports on crypto-media website suggest that the CFTC might still have some concerns around the regulations.
LedgerX, which was planning on releasing similar physically-settled contracts on Bitcoin recently announced its launch. However, the CFTC has stepped in and cited that it has “not yet been approved by the Commission”. This totally contradicts the company’s claims.
Moreover, Bakkt is currently waiting to get approval to manage the custody of Bitcoin under trust charter.
ErisX, TD Ameritrade, Bakkt, and LedgerX are some of the firms lined up to launch a public trading platform of physically settled Bitcoins. While Bitcoin futures settled in cash are still allowed even now. This new design would enable greater marketability and independence from the dollar.
Do you think more and more institutional investors will enter the space? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com