The much anticipated Bitcoin Futures Platform, Bakkt has finally been confirmed for launch. After a delay of approx. nine months the Bakkt Platform is finally set for launch.
According to a recent post from the CEO of Bakkt, Kelly Loeffler,
That vision will be realized on September 23 when Bakkt launches custody and physically-delivered daily and monthly bitcoin futures contracts in partnership with ICE Futures U.S. and ICE Clear US.
The platform had procured a green signal from CFTC on the design of the contracts through the self-certification process and user-acceptance testing. The only thing stopping them from the lunch was the added issue of Bitcoin custody because these contracts will be settled via Bitcoin itself. Loeffler noted,
“With approval by the NYDFS to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures.”
The Bakkt Bitcoin futures contract is now complete. The process of settling trades in Bitcoins involve a Bakkt Trust Company which includes the Bakkt Warehouse for managing the funds of the arrangements. The Bakkt Warehouse is secure and insured by a $125 million policy.
Bakkt’s bitcoin futures will be exchange-traded on ICE Futures U.S. and cleared on ICE Clear the US, which is federally regulated by the CFTC.
The Bakkt platform aims to provide the trust that crypto exchanges lack in providing financial services to institutional traders. Bakkt is found by ICE (Intercontinental Exchange) which is the parent company of the New York Stock Exchange as well.
The price and volume of Bitcoin are surely expected to get a boost from the platform. Bitcoin [BTC] is trading at $10,431 at 16: 00 hours UTC on 16 August 2019. It is trading 3.1% higher on a daily scale.
Do you think that Bakkt launch will drive Bitcoin to new highs? 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