Despite the problems inherent in the current Bitcoin futures market, Bakkt's first-of-its-kind Bitcoin futures contract appears to be ready for regulatory approval.
Bakkt's first product, a futures contract that pays entirely in cryptocurrency rather than cash, is still under review by the Commodity Futures Trading Commission (CFTC) but is scheduled to launch early next year. A Wall Street Journal report hints that regulators are ready to approve the futures and Intercontinental Exchange (ICE) has everything under control.
The contract launch was announced for December 12, but was postponed due to questions raised by the regulator. Now the new Bakkt Bitcoin futures contract is preparing for an official launch on January 24 and the extended preparation period will make it possible to conclude transactions from the first day of trading.
The contract, signed by the owner of the New York Stock Exchange, is aimed at large players who have remained outside the cryptocurrency markets without regulatory approval due to the high danger of price manipulation. The new product makes it possible for Wall Street to use Bitcoin as a popular alternative to stocks and bonds, and in turn the market is expected to generate huge trading volumes.
Today, Bakkt's equivalents in the market include contracts issued by the CME and CBOE, but Bakkt is different in that it is entirely cryptocurrency based, rather than processing contracts that are settled in USD based on cryptocurrency price performance. Therefore, many experts consider the release of the new Bakkt Bitcoin product on the market to be a turning point. The ability to physically transfer Bitcoin to investors with a futures contract should attract Wall Street investors and have a major impact on cryptocurrency prices. Institutional investors will be able to easily buy and sell Bitcoin in a regulatory compliant environment. The company is confident that Bakkt futures contracts are ready to increase the liquidity of Bitcoin.
Famous crypto enthusiast Alex Kruger went so far as to predict an increase in Bitcoin prices at launch Bakkt futures and price collapse when the futures are disapproved. Many are pinning their hopes on the end of the bear market after the launch of Bakkt.
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