Bakkt Have Made Their First Announcement, It’s A Big One Too

Bakkt Have Made Their First Announcement, It’s A Big One Too
Bakkt is still promising to be the next big thing for Bitcoin. Bakkt promises to bring institutional cryptocurrency investment to the mainstream, shattering the dream of the traditional Bitcoin ETF and fostering a new culture of big, crypto investment, through a platform that has been designed to benefit everyone. People are getting very excited about Bakkt, overall it’s no surprise why either. What is Bakkt?
“Bakkt is the brainchild of a number of firms including Microsoft, Starbucks, the Intercontinental Exchange and the Boston Consulting Group. Bakkt, aims to explore blockchain technology and cryptocurrencies by utilising the Microsoft Cloud to develop an open, but regulated digital asset, that in the future could be used at stores like Starbucks. Bakkt believe that institutional investment is going to drive the markets, like many of us believe too. So, how are they going to make their service different and how is Bakkt going to do what no other crypto project has managed to do before? Bakkt understand that regulation is important and needs to be consistent, transparency and price discovery is vital too and finally, they believe that the platform needs to have a quality pre and post trade infrastructure. Support for the institutions, within a platform that is quick and simple to use.”
Bakkt have announced in a recent tweet that they will begin through an exploration of Bitcoin Futures contracts against FIAT currencies:
“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.”
What does this mean? Bitcoin Futures allow traders to predict differing price values for Bitcoin, therefore a similar system will be harnessed within the initial rollout of Bakkt. For many, futures trading is a more conventional method of investment, therefore it’s something that should in theory appear more attractive to institutional investors and those who Bakkt wish to target. The Bakkt platform also seems to suggest, via this tweet, that once contracts go live, those investors involved will be receiving daily Bitcoin payments, encouraging a more consistent flow of Bitcoin. This takes institutional investors one step away from the Bitcoin ETF, though don’t worry, we do expect a number of ETC applications to stand up to this. Moreover, we could well see a Bakkt led Bitcoin ETF formulate as a result of this, after the launch of the Bakkt Bitcoin Futures contracts. References @Bakkt
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