Over the last few weeks, Bakkt has been viewed as a significant catalyst for the much anticipated upside movement of BTC and other dominant digital currencies. Still, it is yet too early to decide if Bakkt will trigger the cryptomarket ‘s upcoming price movement on the upside.
Bakkt is a project created for institutions and traders to buy, sell, store and use digital currencies as explained by the ex-head of the ICE Digital Assets and current chief executive of Bakkt, Kelly Loeffler. ICE, which backs the platform, is running the world’s largest stock market, therefore having many years of experience and high profile in the conventional finance sector, including the CFTC’s authorization to run as a preferred contract market capable of self-certification for futures product.
Thus, Bakkt is able to run a BTC futures market with no need to be directly approved by the CFTC, simply submitting a license before its launch, which is scheduled for December 12. Unlike the existing BTC futures market, ICE and Bakkt intend to engage in physical delivery of bitcoins to those who purchase BTC futures contracts using the platform, thereby affecting the supply and the value of the world’s most dominant digital currency.
In the event that Bitcoin sees increased demand over the upcoming two months and Bakkt actually experiences strong demand from institutional financiers, the Bakkt’s futures market might substantially impact the value of Bitcoin. However, it has to be noted that many conditions still have to be met in order for Bakkt to have a successful growth in the long term.
To properly assess the potential of the Bakkt’s effect on the digital currency, the platform has to complete its first phase, releasing its futures market. Taking into account that so far no information has been provided regarding the aims and goals of the second phase, it is yet too early to claim the positive effect Bakkt will have on the cryptoindustry.