Bakkt: Bitcoin is a commodity, and we like it

ICO News

Bakkt, crypto trading platform that is expected to arise 24th January next year with Bitcoin futures, gave feedback to cryptocommunity’s questions why it prefers Bitcoin. The official Twitter-account of Bakkt developed by ICE, the owner of New-York Stock Exchange, states that “We’ve been asked why we’re starting with Bitcoin. Here’s why: Bitcoin today accounts for over half of total crypto market capitalization and has been deemed to be a commodity, and its derivatives are regulated in the US by the CFTC. As the world’s most liquid and widely distributed cryptocurrency, and where we’ve seen the most customer demand, Bitcoin’s profile creates a liquid product on which to build a futures contract.”

As has recently written that Tom Lee of Fundstrat Global Advisors also considers Bitcoin as “commodity” and argues that there is a consensus in the market don’t treat Bitcoin as “money.”

Kelly Loeffler, Bakkt CEO, has also elaborated about the delay of Bitcoin futures’ launch from previously expecting date of 12th December this year to the next year. The main reason is regulation issue: “Given the volume of interest in Bakkt and work required to get all of the pieces in place, we will now be targeting January 24, 2019 for our launch to ensure that our participants are ready to trade on Day 1.” Loefller highlighted the technicalities of coming Bitcoin futures at Bakkt: “Given the transparency and regulation of the futures markets, the futures price in a one-day physically settled Bitcoin contract will serve as a price discovery contract for the market. There is no reliance on cash platforms for settlement prices for pricing the daily Bitcoin futures contract.”

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