The most anticipated crypto ecosystem platform, Bakkt, has recently been launched, giving institutional investors the opportunity to bet on the crypto universe through an institution that builds trust.
Recall that Bakkt is a Bitcoin Futures platform launched by The Intercontinental Exchange (ICE), a long-standing institution that has earned the trust of the world’s institutional investors.
In case you don’t know yet, Bakkt offers “physically – settled futures”, this means that investors can speculate on the movement of the Bitcoin price in the future and receive their earnings in BTC, instead of an equivalent in US dollars. The relevance of this type of instrument is the effect it can have on the price of BTC. Also, it is just the above that differentiates Bakkt from its direct competitor, CME Group.
Kelly Loeffler, CEO of Bakkt, says it is the first federally regulated exchange to offer trade services for Bitcoin. Clearly the main aspect of this is that it could allow greater regulatory clarity in the industry, which could encourage investment and, with it, the expansion of it.
The first contract was executed when Bitcoin was at $ 10,115. Also, when the session closed at 22:00 UTC on Monday, two daily futures contracts and 71 monthly futures contracts had been negotiated. However, the first daily future was negotiated 18 hours after launch. At the time, only about 18 BTC had been negotiated, however, a few hours later the figure increased to 26 BTC and continued to increase.
Bakkt’s influence on Bitcoin
Many experts in the crypto industry are divided as to how Bakkt could affect the Bitcoin market. Some predict that this will catapult Bitcoin to the next level; however, others predict the failure of the platform.
For example, on Thursday Tom Lee, co-founder of Fundstrat Global Advisors, commented on Twitter:
“I am very positive about Bakkt and his ability to improve trust with crypto institutions.”
And, by the end of Monday, a total of 72 BTC had been negotiated, which represents a volume 75 times lower than that seen in the December 2017 launch of CME, which saw the equivalent of 5,289 BTC traded in such Only your first 24 hours.
The truth is that only time will allow a broad evaluation of Bakkt’s performance at all levels. Blockstream CEO Adam Back explained that companies take time to set up accounts, decide business strategies and increase volume.