The Bakkt trading platform Eyes are on January 24, 2019, for the expected rollout, as per the latest media updates. Developed with backing from ICE, the owner of NYSE and various other global exchanges, Bakkt is poised to make an entry into the market.
A Medium post informed the public Despite that target being January 24th, the certainty of Bakkt going online on this specific date wasn't guaranteed, a piece of news coinciding with the digital asset market's struggle amidst overwhelming selling pressure this week.
As the entire cryptocurrency market sinks below the $200 billion mark, and top cryptos dip to last year’s levels, ICE’s initiative with Bakkt sends a hopeful message about the future of cryptos, hinting that digital currencies could see a boost in investor interest someday soon.
Read: What is Bakkt?
Bakkt is Getting Ready for Business
The CEO of Bakkt, Kelly Loeffler, explained in a Medium post that, due to the sheer interest in Bakkt and the extensive preparations involved, the January launch was picked to make sure everyone's set for trading from the get-go.
Further on, Ms. Loeffler highlighted Bakkt's collaboration with the US Commodity Futures Trading Commission (CFTC) to ensure that both the Bakkt™ Bitcoin Daily Futures contract and the Bakkt Warehouse comply with the regulations, while these products mark a pivotal change towards making crypto markets more user-friendly, useful, and properly governed.
Bakkt will be offering Bitcoin cold storage securely store cryptocurrencies, considered one of the highest security measures.
Unlike online wallets, where private keys are more vulnerable, these keys reside in an offline system, complicating any theft attempts. Although not the pioneers of cold storage, Bakkt, with ICE’s involvement, might attract a different clientele stream than others.
Physically Settled BTC Futures!
Recent updates from Bakkt include their plan to provide physical settlements for their Bakkt Bitcoin (USD) Daily Futures Contracts, which have met all the regulatory standards. These contracts will be overseen by ICE Clear U.S., significantly enhancing the product’s credibility.
The physically settled BTC contracts stand apart from the current futures contracts on the Chicago Mercantile Exchange (CME), settled in cash. Upon expiration of these contracts, the buyer receives money, not Bitcoin.
The Federal Reserve cited the introduction The CME contracts are often accused of being a reason for Bitcoin's price dip, but no direct links seem to connect Bitcoin and the CME contracts. This implies the impact might be reflective of investors' perceptions rather than a tangible relationship.
Where is the Bottom?
Bakkt is one of a few new trading platforms for cryptos.
Despite growing public understanding of cryptocurrencies and their operations, the perceived floor for prices seems to have vanished. Bitcoin prices Cryptocurrencies often serve as the pulse for assessing the whole sector's condition, a factor suggesting 2019 might challenge the resilience of cryptos.
The central issue remains the lack of intrinsic value for most cryptos. Major financial institutions and corporations using the more popular blockchains, like Ethereum while they lack substantial need for these digital currencies.
In the absence of widespread adoption as a store of value, crypto prices might not see a sustained upward trend. They're still largely speculative and might not see the value stability required in the coming months. In the long run, platforms like Bakkt are accurately positioned to flourish!
