The Bakkt platform has revealed the possibility of one-day bitcoin futures. Will this spike a ‘bitcoin revolution’ in the near future?
The Intercontinental Exchange (ICE) announced on the 3rd of August the release of a cryptocurrency platform known as Bakkt. The platform is supported by giant firms in the market
like Microsoft, BCG, and Starbucks. Its primary objective will be to offer a “scalable on-ramp for institutional, merchant and consumer participation in digital assets by promoting greater efficiency, security, and utility.”
The news spread wild and wide in the crypto world as specialists, entrepreneurs, and analysts speculated on the idea. In this blog post, I have covered the significance of this development in the cryptocurrency markets. Nonetheless, it is prudent to know the big fish behind the project first.
What Are Intercontinental Exchanges?
Intercontinental Exchanges (ICE) is the body running 23 regulated exchanges and six clearinghouses in the world. In short, ICE is the owner of the world’s biggest exchange, New York Stock Exchanges.
Bakkt Explained
Bakkt is a platform owned by ICE that will enable institutional investors to access and use their crypto coins. Additionally, the platform will work as bitcoin warehouse as well as feature one-day BTC futures. Thus, the Bakkt platform will obtain the physical bitcoin that will become the primary stronghold of the BTC futures.
As a result, investors will not be required to create e-wallets to be able to manage their cryptocurrency exchange accounts. According to an official announcement from Bakkt, unlike the current bitcoin futures contracts, the platform will neither offer its members opportunities of marginal trading nor utilize leverage. Instead, it will enable people and institutions to buy, sell, store and spend digital assets seamlessly.
Why Is The Bakkt Platform Crucial To The Crypto World?
The crypto world is on the constant push for the conventional acquisition of electronic assets. Thus, the introduction of Bakkt is seen as significant progress in achieving it.
This platform will help classic investors, who still doubt the functionality of cryptocurrency and markets, gain more trust in virtual assets.
It is also worth mentioning that Bakkt will attract many big investors in the crypto world as it is affiliated to popular brands.
The platform will act as a portal and a doorway to potential institutional investors which will enable the crypto world to access more money for research and development of innovative ideas of crypto. Furthermore, the Bakkt platform will help in eradicating or controlling price manipulation which has been witnessed in the crypto market in the past years.
Importantly, the scope of liquidity ICE is ready to provide is a far cry from what any existing biggest cryptocurrency exchange can offer. Specifically, the assets under its control add up to $78 bln with just under a $6 bln revenue.
The above-mentioned factors indicate the Bakkt could be a driving force behind the next bull run in the cryptocurrency realm.
Physical BTC Futures
Bakkt also revealed that the first contracts would be physically delivered bitcoin futures contracts against fiat currencies such as USD, GBP, and EUR.
Moreover, as it was stated the purchase of one USD/h2TC futures contract would unlock a daily delivery of one bitcoin to the investor.
These echoes the statement released in August that the platform will not provide “paper claims on real assets.” Essentially, Bakkt will focus on directly trading bitcoin.
The Bottom Line
There have been many developments in the crypto world in 2018, and the launch of Bakkt seems to be the most significant. There is no doubt that approval or disapproval of Bakkt platform by CFTC will affect the market. Thus, it is crucial for investors to stay updated.
To remind you, ICE is planning to launch their groundbreaking platform in December.
The best way to get the latest information as an experienced investor is to keep your eyes peeled to our blog. WildTornado will make sure each important crypto news is delivered into the ears of our readers.
While you are here, let us also show you the gateway to the innovative and juicy fruits of the crypto revolution – BTC Games. Not capitalizing on their numerous beneficial features equates to committing a crime against your prosperous future-self!