I don't think they'll get #cancelledT ever.
71 Bitcoin (BTC) futures contracts in the first 24 hours following its launch on Sept. 23, 2019.
Bakkt's data feed will be freely available ONLY until June 2020. Subscription follows suit.
A F T E R 13 M O N T H S !!!
ICE-backed BTC warehouse and futures contract facilitator Bakkt has finally launched last September 23, 2019 welcoming institutional investors to take positions on the cryptocurrency in a "federally-regulated" venue.
Note that contracts expire AFTER ONE DAY. Currently, the initial hedge requirement for daily and monthly futures contracts is $3,900, while the speculative initial requirement for both contracts is $4,290.
It aims to enter the cryptocurrency market with an open platform for all manner of cryptocurrency services, noting trading and warehousing.
Bakkt's futures will be physically settled so buyers can receive BTC at expiration. whereas futures available since 2017 at the CME Group are cash-settled, side betting on the cryptocurrency's price.
Anticipating demand for its futures from institutional investors, it's been visible that the curious institutions recognise the significance of BTC futures, and the favourable trading volume so far.
Compared to other commodities such cocoa, the underlying asset is usually not delivered until after a month. Bakkt offers 30-day bitcoin futures , the one-day versions allows institutions to buy/sell BTC in a way that's more familiar to them compared to confusing cryptocurrency exchanges.
Another unique proposition is its backers and its founding company. Bakkt is a product of the same company that spawned the vaunted New York Stock Exchange, and it plans to enter the market with the support of a self-described “marquee” of big names — including BCG, Microsoft, and Starbucks.
Simply put, it is institutional investment geared toward creating more institutional investment.
Beginning operations with an eye toward regulatory scrutiny, Bakkt atempts to leapfrog the regulatory hurdles that have challenged cryptocurrency throughout its decades-long rise — and in 2018, in particular.
Crypto market observers have identified a few key advantages of this new player, which all seem positive from an adoption point of view.
It can be remembered that there were some apprehensions brought out via pros and cons about Bakkt last year from Bruce Ng, to share:
(comments are from Bruce Ng back in 2018)
Larger trading volume. Right now, the combined CME and CBOE Bitcoin futures daily volume is only 9,000 Bitcoin (BTC). That’s puny in comparison to the total daily volume on exchanges — as much as 1.6 million BTC.
With the launch of Bakkt, institutional volume could not only grow by leaps and bounds, it could even rival (if not surpass) the trading volume on the exchanges.
Another plus: We expect many institutional investors to move from the opaque OTC markets to more transparent platforms like Bakkt. Result: More liquidity and lower volatility for crypto investors.
ETF Approval. No trusted price information and over-reliance on futures markets. But Bakkt could help resolve both issues so rejection for ETFs were apparent back in 2018, greasing the way for the launch of future ETFs like the VanEck/SolidX ETF in 2019.
Custody. Bakkt solves the custody problem, which has so far discouraged large institutions from investing in Bitcoin. But with Bakkt, clearing members will no longer be required to handle Bitcoin themselves.
Regulated ICOs. Bakkt will attract more corporate issuers to raise capital via ICOs. And on the next round, we expect to see greater clarity, especially when it comes to the distinction between utility and security tokens.
High-risk crypto derivatives
Institutions could use the derivatives to manipulate or exaggerate the price of Bitcoin and other cryptos. Or, they could use their Bitcoins stored in custody to leverage other investments.
But even so, there will be no leverage, commingling or rehypothecation from Bakkt.
Give a little love and trust them to deliver.
Sticking to its foundations, Bakkt CEO released a Medium article sharing some truth bombs
Reliable and regulated infrastructure matters to investors and consumers alike.
Digital currency represents both new technology and new financial instruments, and TRUST is central to the adoption of both
Innovative ways of managing and transferring digital value are expanding rapidly
"We’re starting with the basics: instilling trust through regulation and secure custody, and deploying products that are transparent and regulated to support their adoption. This commitment is reflected in our mission at Bakkt: Expanding access to the global economy by building trust in and unlocking the value of digital assets." - Kelly Loeffler
VIEW ICE DAILY FUTURES CONTRACT HERE
Why was it delayed anyway?
"new listing timeframe will provide additional time for customer and clearing member on-boarding prior to the start of trading and warehousing of the new contract.” READ
Regulatory delays have become the norm in the US
But looks like we have the support of CFTC (ugh finally) in this clip:
Brian Quintenz of the U.S. Commodity Futures Trading Commission says the expansion of the crypto industry will create new challenges for CFTC as a regulator, but it is ready to meet those challenges.
It's too early to talk about the volume. We have just gotten our foot in. But indeed, Bakkt paves the way to address trades for institutions and regulations that suits this asset class. Great steps towards the right direction, renewing hope for crypto folks. There’s an opportunity to interoperate existing platforms with emerging technology to overcome mass adoption hurdles.
My personal take after observing the charts is that it doesn't fly off the handle each halving. There's a lulling period where volume and value is sideways, perhaps fear overpowers action, but it does go upward. The trading behaviour is that most wait and see, before taking action. Validating firsthand incoming information and finding the RIGHT opportunity. So, let us wait and see how far this takes us.
To end, I am still in the process of reviewing reports and would like to share some to you
I appeal to your journalistic efforts to cite your sources, as I have. Thank you.
Sharing Past tweets about Bakkt and the markets, been following them since August 2018. When they were shared by my whale friend (secret!) , who also got me into AION early on.