After postponing Bitcoin futures to late January, now Bakkt has shared that it will consider adding other digital currencies as well based on customer feedback as the landscape evolves which has got the altcoin community moving.
Bakkt will Consider the addition of Altcoins
Nasdaq’s parent company ICE’s global, regulated ecosystem for digital assets, Bakkt recently announced that it is postponing the launch of Bitcoin futures to January 24, 2019.
In its Twitter thread discussing the reason behind going for Bitcoin, Bakkt says,
“We’ve been asked why we’re starting with Bitcoin. Here’s why: Bitcoin today accounts for over half of total crypto market capitalization and has been deemed to be a commodity, and its derivatives are regulated in the U.S. by the CFTC…
As the world’s most liquid and widely distributed cryptocurrency, and where we’ve seen the most customer demand, Bitcoin’s profile creates a liquid product on which to build a futures contract.”
Now, Bakkt has declared that it is open to adding other digital currencies on its platform,
Question: We’ve been asked if we will add other digital currencies
Answer: We’ll consider additional contracts as the landscape evolves and as we receive additional customer feedback about what they want and need
— Bakkt (@Bakkt) November 23, 2018
Well, this got the altcoin community in action. Tron founder and CEO Justin Sun took it upon himself to suggest Bakkt that Tron is, in fact, the best choice,
— Justin Sun (@justinsuntron) November 23, 2018
One of the most active communities in crypto space is of second-largest cryptocurrency XRP that instantly went on this poll created by XRP enthusiast Dr. T,
Should Bakkt Add XRP?
— Dr. T ⚡️ (@XRPTrump) November 23, 2018
Well, soon after Litecoin community jumped on this bandwagon as Crypto Capital Venture founder shared this Tweet:
Dear @Bakkt, you’re considering additional digital currencies & contracts…and you’re looking for customer feedback?
Check this out!
— Crypto Capital Venture ⚡ (@cryptorecruitr) November 24, 2018
At this point, it’s only a consideration as stated by Bakkt and moreover, even Bitcoin futures have yet to come, having postponed already.
Bakkt according to many people will act as a catalyst in taking bitcoin higher. Bart Smith, head of digital asset at trading giant Susquehanna believes it can solve the problem of liquidity in Bitcoin markets as he explains,
“Number one, the on-ramps for new capital is very difficult. If you’re a global institution, it is still very difficult to buy Bitcoin in a way you might want to. A wealthy individual from the G.I. Generation is not going to take a high-resolution picture of their driver’s license and send it to a website and send money there. They want to invest with Fidelity. They want to invest with Bank of America.”
He further shared,
“That has led to the second problem which is without the new capital on-ramp, liquidity has been very low. And so we’ve kind of seen a stable price all through summer, it was at $6,000 give or take. Volatility got really light at the end of July. So what happens is in that environment, if you have a contentious fork, it does not necessarily create a tremendous amount of confidence and when those sellers come in, there’s just no liquidity to absorb it. Hopefully, with Bakkt, Fidelity, and further regulations, there are going to be enough capital to soak it up.”
Ashutosh Singh from Computer science background is a full-time content writer at Coingape. His passion lies in writing and delivering apt information to users. Currently, he does not hold any form of cryptocurrencies. Reach out to him at [email protected]