In a major twitter announcement, the team at the highly anticipated Wall Street firm of Bakkt, informed the crypto and investing community, of its first physically settled Bitcoin futures contracts.
In the tweet, the team at Bakkt announced the following:
Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP and EUR. For example, buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.
In early August this year, the Intercontinental Exchange (ICE) – the owner of the New York Stock Exchange (NYSE) – partnered with Microsoft, Starbucks, BCG and others, to launch Bakkt. The firm is building an open, seamless global network to enable investors, merchants and consumers to buy, sell, store and spend digital assets in a simple, more efficient and secure manner.
Bakkt Boosts The Possibility of a Bitcoin ETF
This latter fact of securely storing digital assets, has been put forth as one of the reasons the SEC might approve a Bitcoin ETF in the near future. Backed by ICE, Bakkt solves the problem of custody services for large scale institutional investors. Lack of a major Exchange providing custody services has been put forth as a reason the SEC might be delaying the approval of a Bitcoin backed ETF.
CNBC’s Brian Kelly expressed this fact when he stated the following.
This is huge news. I think the market is completely underappreciated. So let us talk about why [Bakkt] is the biggest news of the year for Bitcoin.
It paves the way for a Bitcoin ETF. Last week I stood here and said you know what, I don’t think the Bitcoin ETF will get approved. And guess what? The Winkelvoss ETF got rejected. Why?
Because there was not a US regulated exchange and there wasn’t US regulated custody.
Bitcoin Breakout In November?
With the launch of Bakkt scheduled for November, it is only natural that many crypto-analysts continue to predict that there might be a BTC breakout leading up to the launch, and after the fact.
[Image courtesy of Bakkt.com]