Bakkt Set for September Launch: Here’s What You Need to Know

Andrew Cummings
August 18, 2019

Specifically, the company's physically delivered futures contracts are expected to dramatically drive the adoption of cryptocurrency futures trading. Additionally, the platform is launched by NYSE's parent company Intercontinental Exchange, thereby introducing the Bitcoin market to institutional investors.

Today, Bakkt announced in a blog post that the platform is gearing up for a September launch for its Bitcoin futures Contracts. Bakkt is meant to cater for institutional interests with a fully-regulated and secure cryptocurrency derivatives platform that they now believe are "underserved". "In addition, the independent governance and compliance requirements of a qualified custodian mean that the Bakkt Warehouse is created to meet the highest standards of oversight", the announcement read.

The bitcoin futures contracts being launched will not rely upon spot market for settlement prices and it will be able to serve as a transparent price discovery mechanism for the price of bitcoin and will also allow consumers avoid the manipulative spot market activity which has been reported on in recent times as well as other issues such as anti-money-laundering policies and compliance controls.

Loeffler noted that the digital asset markets are now well-developed on a global scale but are not yet structured to serve institutional investors due to concerns about regulation, market quality, lack of liquidity, reliability, and risk.

"We're starting with the introduction of a regulated and secure qualified custodian for Bitcoin to support our futures contracts". This is the first virtual currency trust company application approved under Superintendent Lacewell.

The Bakkt futures contracts will be taken care of by the guaranty fund at ICE Clear US, that has an established risk outpouring through different commodities markets.

Throughout 2019, especially since the soft opening of Bakkt's testing platform, investors expected the firm to obtain approval from US regulators by the year's end.

Have you been waiting for Bakkt's launch? It started user testing last month. Now, many in the crypto world hope that this announcement will have a positive effect on the bitcoin price as it opens the door to institutional investors.

At press time, Bitcoin was trading at near $10,500 with a market cap just above $187.6 billion. "Until our launch on September 23, we'll continue onboarding and testing with market participants", Bakkt CEO, Kelly Loeffler said, apparently with reference to the fact that Bakkt began user acceptance in July.

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