Discovering Bakkt: What's It All About and How Can It Shake Up the Crypto Industry?

The hunt for substantial institutional investments appears to be the ultimate goal for cryptocurrencies, almost reaching the point of widespread approval.

Currently, an ocean of funds is absorbed in institutions through various financial products like stocks and bonds. Transitioning these into digital currencies could exponentially boost the crypto market's overall value.

Apart from the obvious financial gains, a hefty wave of institutional funds could lend cryptocurrencies the acknowledgment they need for wider acceptance and usage.

The general consensus is that once financial giants like Goldman Sachs or Bank of America start making strategic business moves centered on cryptocurrencies, it signals that these digital assets are evolving from niche tech interests to legitimate financial tools.

Enter Bakkt

Enter Bakkt Bakkt is preparing to dive into the crypto scene with an inclusive platform featuring various services related to digital currencies, such as trading and secure storage.

What distinguishes Bakkt from its competitors is its impressive lineup of backers and its founding lineage. It's a brainchild of the same entity that birthed the famous NYSE New York Stock Exchange , and its market entry is buoyed by a \"marquee\" of industry giants, notably BCG, Microsoft, and Starbucks.

In essence, it's an institutional investment venture designed to spur additional institutional investment.

We'll explore what Bakkt is, its strategic objectives, and the market's buzz about this potentially groundbreaking player.

An Introduction to Bakkt

In August 2018, Bakkt’s parent company Intercontinental Exchange Bakkt has declared its intent to utilize Microsoft's cloud platform Azure to establish \"an open and regulated, global digital asset ecosystem.\"

Right from its inception, Bakkt plans to include federally regulated marketplaces and supportive services like secure storage.

It would even feature Bitcoin to fiat conversions , a feature that is rare on cryptocurrency exchanges and a significant factor that separates market leaders from the rest. Overall, Bakkt’s target is a digital market worth $270 billion annually.

“By combining regulated and interconnected infrastructure with institutional and consumer solutions for digital assets, we aim to instill confidence in this asset class globally, consistent with our history of delivering transparency and trust to previously unregulated markets,” stated Jeffrey Sprecher, founder and CEO of Intercontinental Exchange.

Bakkt introduces its main initiative: a U.S.-based exchange and clearinghouse designed for physically delivered Bitcoin contract settlements within a single day.

Looking ahead, Bakkt aims to cater to every facet of the cryptocurrency supply chain, reaching from hobbyist investors to global enterprises like Starbucks. Starbucks will be at the forefront, collaborating with Bakkt to explore methods for \"converting digital assets into U.S. dollars for customer transactions at Starbucks,\" as per Maria Smith, the company's VP for partnerships and payments. coupled with physical warehousing.

The impressive roster of investors and potential Bakkt partners features a veritable who's who of finance, including Alan Howard, Pantera Capital, Fortress Investment Group, Eagle Seven, Galaxy Digital, Protocol Ventures, Susquehanna International Group, and Horizons Ventures.

Bakkt is crafted to act as a scalable access point for institutional, merchant, and consumer involvement in digital assets, by enhancing efficiency, security, and functionality,” explained Bakkt CEO Kelly Loeffler. “We are working together to develop an open platform to unlock the transformative potential of digital assets globally.”

It’s probably no coincidence that the name “Bakkt” sounds reminiscent of “backed.” As a project spearheaded by the NYSE's founding company, incorporating Microsoft tech, and already endorsed by numerous prominent institutional investors, it is notably partnered with the globally recognized Starbucks.

In the wild imaginations of crypto advocates, you’d struggle to assemble a more complete spectrum of market influencers. All that seems to be needed is a nod from Amazon and an approval letter in gold trim from the U.S. SEC granting Bakkt unobstructed market access.

What the Market Is Saying

Yet, that’s almost precisely the landscape Bakkt is striving to cultivate. By prioritizing regulatory focus from the outset, Bakkt is seeking to navigate the regulatory terrain that has thwarted cryptocurrencies across their multi-decade evolution—especially during 2018.

Crypto market watchers have pinpointed several obvious benefits of this newcomer, which all appear favorable for adoption.

The standout feature is clearly its focus on institutional investment. Bakkt has attracted attention with its initial lineup of venture capital backers.

The prevailing thought is that if these established firms are open to venturing into the digital currency space, larger firms are likely to follow. This becomes even more probable if Bakkt adheres to regulatory guidelines and secures operational approvals as it progresses.

Institutional Investment

Interestingly, this logic also works the other way around. Should prominent investors show confidence in Bakkt’s operations, it follows that individual investors might be inclined to join. It’s well-known financial wisdom that smaller investments often trail the paths blazed by larger ones, like small fish following larger fish for leftovers.

If a prominent venture capital firm places its trust in Bakkt, those under its influence are expected to do likewise. This chain reaction could draw significant capital from previously untouched reserves—such as credit unions, retirement plans, and 401(k)s.

By their very nature, these investment types are often conservative since they aim to financially prepare their investors for the future. Without robust institutional support, the cryptocurrency market has been notably unstable. A kind of vicious cycle has emerged, where the absence of institutional funds due to volatility has hindered a capital injection that could help stabilize volatility.

Thus, it’s evident that Bakkt’s entrance could alleviate the concerns of cautious investment mechanisms.

From a tech standpoint, there’s another angle to consider. Bill Gates, the visionary behind Microsoft, has been notably critical of cryptocurrencies, even suggesting they’ve caused harm “in a rather direct manner.”

Yet, Bakkt's foundation is built on Microsoft’s Azure cloud services, hinting at a subtle endorsement of digital currencies as a viable entity by the tech juggernaut.

Given Microsoft's dominance in personal computing and software markets, it's plausible smaller developers will follow suit by integrating Bakkt’s offerings into their own innovations.

Few companies venture to develop solutions based on untested or sparsely adopted technology. With Microsoft leading, it’s almost assured that developers will follow its path.

In September 2019, Bakkt unveiled its inaugural physically-settled Bitcoin futures products, amidst considerable buzz.

Since the Intercontinental Exchange, known for owning the NYSE, announced the

Anticipating the Arrival of Bakkt Bitcoin Futures in September 2019

platform and related plans for Bitcoin futures, stakeholders within the cryptoeconomy have been hopeful that this initiative’s launch could be a pivotal moment for wider public recognition of cryptocurrencies.

Naturally, only time will tell how Bakkt will perform moving forward. Nonetheless, the initiative has secured significant support, and as of September 23rd, it boasts substantial derivatives offerings — daily and monthly contracts tracking Bitcoin’s value — which at the very least should further legitimize the cryptocurrency to new audiences. Bakkt At precisely 8:02 pm Eastern Time, the first Bakkt Bitcoin Futures was traded at $10,115.

Upon hearing the news, Bakkt’s CEO Kelly Loeffler reiterated her belief that launching the company’s derivatives operations would likely make mainstream investors feel more at ease with Bitcoin:

We’re live!

\"As institutions delve into this emerging asset class, there remains a focus on secure infrastructure and the regulatory clarity it provides. These futures contracts, importantly, now act as benchmarks thanks to a reliable price discovery process upon which investors can depend.\"

— Bakkt (@Bakkt) September 23, 2019

The rollout of these futures proceeded as expected; last month, Loeffler had confirmed September 23rd as the

launch date for the derivatives. However, Bakkt had experienced multiple delays prior while finalizing its groundwork.

With the public availability of these futures contracts, Bakkt now stands alongside CME Group, a prominent name in mainstream derivatives that launched its debut Bitcoin futures product back in December 2017. target release date The unexpected shutdown of Bitcoin futures by the Chicago Board Options Exchange (CBOE) earlier this year means only Bakkt and CME Group currently cater to this market segment.

Noteworthy, Bakkt's Bitcoin Futures represent the first in the U.S. that provide BTC directly to purchasers upon contract expiration, managed by Bakkt Warehouse, its custodial division.

However, initial trading witnessed a subdued level of activity.

Introducing a Fresh Take on Bitcoin Futures, But Initial Interest Appears Modest

The low trading volume on the inaugural day led to an abundance of social media reactions, with some ridiculing and others expressing astonishment at the perceived lack of enthusiasm for the offerings. By the end of the day on Monday, only 71 monthly contracts and 2 daily contracts—equating to 72 Bitcoin, or roughly $700,000 based on current valuations—had been acquired.

What exactly is Bakkt, and how might it revolutionize the world of cryptocurrency?

Bakkt, a creation of the minds behind the New York Stock Exchange, is making its debut in the crypto arena, aiming to attract institutional investors to the fold.

Facilitating access for institutions, merchants, and consumers, Bakkt offers a reliable and secure environment for digital assets.

The allure of institutional investment dollars has become the new sought-after prize in the cryptocurrency realm, just on the brink of broader public acceptance. pic.twitter.com/4BlvxnZejj

— Larry Cermak (@lawmaster) September 23, 2019

Currently, vast sums of capital circulate within the realm of institutional finance, locked up in things like stocks and bonds. Redirecting this into cryptocurrency could exponentially increase its market capitalization.

Beyond financial gains, an inflow of institutional funds could provide the legitimacy needed for cryptocurrencies to gain wider acceptance and integration. estimated earlier that “Bakkt As influential entities like Goldman-Sachs or Bank of America begin structuring core business plans around cryptocurrency movements, the narrative suggests that crypto will shift from a techie's plaything to a serious financial tool.

Bakkt has announced the opening of its Bitcoin Custody Warehouse to embrace \"All Institutions.\"

Bakkt sets the stage for Bitcoin futures to make their mark in September 2019.

Introducing a fresh take on Bitcoin futures, Bakkt finds the initial demand somewhat muted. LinkedIn Bakkt opens the doors of its Bitcoin Custody Warehouse to all institutional players.

The trading volume for Bakkt's Bitcoin Futures surges past the $30 million mark.

Could Bakkt truly be the catalyst for wider acceptance in the mainstream?

Bakkt is set to dive into the cryptocurrency market with a comprehensive platform offering a range of services, from trading to warehousing.

What distinguishes Bakkt is its esteemed backers and its founding lineage. Born from the same company responsible for the venerable New York Stock Exchange, it plans its market entry armed with top-tier support from renowned names like BCG, Microsoft, and Starbucks.

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To put it plainly, it's institutional investment designed to cultivate more institutional investment.

We plan to delve into Bakkt's identity, its objectives, and market perspectives on this potentially transformative entity. Email An announcement stated Bakkt's plan to utilize Microsoft's cloud service, Azure, to develop a global, open, and regulated ecosystem for digital assets.

This new enterprise, called Bakkt, will kick off by incorporating federally regulated marketplaces and supplementary services like warehousing from the outset.

One of the primary distinctions between industry leaders and competitors lies in Bakkt's anticipation of serving a digital marketplace processing $270 billion annually.

Bakkt Bitcoin Futures Surge Beyond the $30 Million Mark

Bringing together regulated, connected infrastructure and applications for digital assets, we intend to foster confidence in the asset class on a global scale, highlighting our history of introducing transparency and trust to previously unchecked markets,\" stated Intercontinental Exchange founder and CEO Jeffrey Sprecher.

Bakkt's standout proposition introduces a U.S.-based futures exchange and a clearing-house design for single-day, physically delivered Bitcoin contracts.

Ultimately, Bakkt aspires to cater to every tier of the crypto supply chain, from casual stockholders to major merchants like Starbucks. Telegram In fact, Starbucks will pioneer collaboration with Bakkt to explore converting digital assets to U.S. dollars for usage at Starbucks, as discussed by Maria Smith, vice president of partnerships and payments at Starbucks.

A diverse roster of investors and prospective partners for Bakkt includes prominent financial entities such as Alan Howard, Pantera Capital, Fortress Investment Group, Eagle Seven, Galaxy Digital, Protocol Ventures, Susquehanna International Group, and Horizons Ventures.

Bakkt's strategic design aims to serve as a scalable on-ramp for institutional, merchant, and consumer involvement in digital assets by enhancing efficiency, security, and utility, as described by Bakkt CEO Kelly Loeffler. Armed with teamwork, we're building an open-platform that unlocks digital assets' transformative potential globally.

Telegram WhatsApp

It's not too far-fetched to hear 'Bakkt' and think 'backed'. It makes sense when you consider it's a venture by the minds behind the New York Stock Exchange, powered by Microsoft technology, carries a cadre of esteemed institutional investors, and counts the ubiquitous Starbucks among its debut partners.

In a cryptocurrency enthusiast's wildest dreams, it would be hard to assemble a more comprehensive roster of market heavyweights. The only missing piece is perhaps an Amazon endorsement and an engraved certificate from the U.S. Securities and Exchange Commission assuring Bakkt's unchallenged market access.

This is close to the reality Bakkt is portraying. By initiating operations with a clear focus on regulatory oversight, Bakkt aims to surmount the regulatory challenges that have dogged cryptocurrency throughout its journey to prominence — particularly evident in 2018. WhatsApp Crypto market analysts have pinpointed several inherent strengths in this new contender, all appearing advantageous from an adoption standpoint.

Enter Bakkt Table of Contents Toggle Table of Content

Another significant appeal Bakkt offers is its links to institutional venture funding from the get-go.

Given confidence from these major investors diving into the crypto space, one can expect even larger players to jump onboard. This probability increases if Bakkt secures permission for its future operations through regulatory compliance. Toggle Enter Bakkt Enter Bakkt

An Introduction to Bakkt An Introduction to Bakkt

What the Market Is Saying

Interestingly, this notion works in reverse. If big-name investors are satisfied with Bakkt's dealings, it stands to reason that smaller investors will follow suit. It is well-established in finance that smaller investors often follow their larger counterparts, much like smaller fish follow larger ones to nibble on leftovers.

When a major venture capital firm expresses faith in Bakkt, firms watching them for guidance are likely to do the same. This could unlock new streams of funding from previously untapped sources — through credit unions, retirement accounts, and 401(k)s among others.

By nature, these financial instruments tend to be cautious, built to help in future planning. Without backing from major institutions, the crypto market's volatility has been notorious. In a bit of a vicious cycle, the absence of institutional capital due to volatility has impeded a much-needed influx of capital that could stabilize volatility.

Thus, it's clear to see Bakkt's market entry can only quell the fears associated with traditionally prudent investment vehicles.

This also applies from a technology perspective. Bill Gates, the pioneer of Microsoft, has famously criticized cryptocurrency, even blaming it for fatal outcomes 'in a fairly direct way.' What the Market Is Saying .

Yet, Bakkt's foundation on Microsoft's cloud services, Azure, hints at a vague approval from the tech giant for cryptocurrency as a valid entity.

Does Bakkt Hold the Key to Mainstream Cryptocurrency Acceptance?

Given Microsoft's commanding market share in personal computing and mainstream software, it's plausible that smaller developers will follow their lead in introducing Bakkt's offering in their products.

Rarely do companies build their applications on unvalidated or scantily adopted technologies. With Microsoft leading the charge, it's almost assured that developers will align themselves.

In September 2019, Bakkt rolled out its first physically-settled bitcoin futures product, amidst much buzz.

Since the owners of the New York Stock Exchange, Intercontinental Exchange (ICE), unveiled the platform and its bitcoin futures strategy, numerous cryptoeconomy stakeholders have hoped this launch will be a key turning point for cryptocurrency's mainstream attention.

Naturally, Bakkt's success in the coming years remains to be seen. Yet, the venture's strong backers, and, as of September 23rd, its major derivative offerings — daily and monthly contracts tracking bitcoin prices — will at the very least further cement cryptocurrency's legitimacy and bring so-called 'digital gold' to broader audiences.

At 8:02pm ET, the first-ever Bakkt Bitcoin Futures trade landed at a price of $10,115.

On this news, Bakkt CEO Kelly Loeffler expressed optimism, suggesting that the company's entry into derivatives should further entice institutional investors to warm up to bitcoin:

As institutions enter this budding asset class, they will continuously seek the secure infrastructure and regulatory assurance we provide. Importantly, these futures contracts establish reliable benchmarks for price discovery, lending credibility to investor expectations.

Bakkt adhered to its schedule for the futures launch, having disclosed previously that September 23rd was the anticipated start date for the derivatives, albeit after overcoming multiple delays to polish preparations.

With its futures contracts now accessible to the public, Bakkt joins the mainstream derivatives marketplace alongside CME Group, which made a similar debut with bitcoin futures in December 2017.

Institutional Investment

• https://www.businesswire.com/news/home/20180803005236/en/Intercontinental-Exchange-Announces-Bakkt-Global-Platform-Ecosystem
• http://www.cryptomorrow.com/2018/08/20/what-is-bakkt/
• https://www.businessinsider.com/bill-gates-on-cryptocurrency-2018-2
• https://cryptoiscoming.com/what-will-bakkt-do-for-crypto/
• https://hackernoon.com/what-is-bakkt-59081e7df314

It’s Not All About Institutions