Only a month left and then the highly anticipated Bakkt goes live! Bakkt launches their futures contracts on 23 September 2019 but institutional customers can already send their bitcoin to Bakkt on 6 September.
On Sept 6, our Warehouse will start offering secure storage or customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept 23
These contracts will enable physical delivery or bitcoin with end-to-end regulated markets and custody
– Bakkt (@Bakkt) August 28, 2019
Why is Bakkt different?
There are already several organizations that offer future contracts on the bitcoin rate for institutional clients. Consider for example the CME. These are ultimately paid out in fiat money and therefore no bitcoin is purchased. Bakkt is the first party to settle future contracts with bitcoins. Although first, Coinflex offers competition from Asian corner.
The institutional acceptance of cryptocurrency is gradually increasing, but there are only few workable products available for investing safely and simply in bitcoin, at least for such large parties. In that regard, Bakkt comes with their infrastructure just in time.
Bakkt is supported by the Intercontinental Exchange (ICE), which in turn is the owner of the New York Stock Exchange (NYSE). This fact alone, that the lender is one of the biggest names, is an unwritten statement that Bakkt is safe for institutional clients. With such a large party behind Bakkt, investors can rely on high-quality service, safety and the right insurance.
The launch of their Warehouse means that the product is ready and has successfully completed the test phase of the user. Bakkt now starts processing customers and accepting their BTC deposits. These deposits serve as collateral for the settlement of the exchange of futures contracts.
Bakkt’s original plan was to launch in early 2019, but several regulatory delays pushed the launch until the end of 2019. From the beginning of 2018 it was already mentioned that institutional money can push the market to great heights. But in 2018 there was mainly news about the postponement and rejection of Bakkt and ETFs. This did not necessarily do well to the cryptocurrency sentiment in 2018.
Coinflex stirs from Asia
CoinFlex crypto fair went live on February 2019. They mainly focus on crypto dealers in the Asian market. Mark Lamb is the CEO of CoinFlex, he says that physically delivered bitcoin futures contracts are better for traders than if the contracts are paid out with money. Traders can be sure in this way that the spot and futures prices have not been tampered with. of the coins.
Both large and small traders are victims of price manipulation on the cash-settled futures market. Physically delivered contracts, on the other hand, ensure that traders receive underlying bitcoin. No crazy formulas are involved here.