Cleared to Launch Next Month!
The institutions are coming to the crypto markets; Bakkt officially announced that it has received the “green light” by regulators to launch its long awaited digital asset platform. The CFTC gave the all clear after approval was given from the New York State Department of Financial Services (NYDFS).
“Our contracts have already received the green light from the CFTC through the self-certification process, the Bakkt Warehouse will custody bitcoin for physically delivered futures.” – Bakkt Announcement
With a launch date now set for September 23rd, 2019 and offering daily and monthly physical Bitcoin futures contracts, the price of Bitcoin has reacted positively after a sharp drop earlier this week.
Bakkt revealed weeks prior that it has been working on gaining regulatory clarity over the last twelve months. This is critical for the nature of the operations that will be undertaken to provide users with clarity, and the Bakkt Warehouse will store Bitcoin for physically delivered futures.
“Importantly, we’ve designed the Bakkt Warehouse to provide regulated, secure custody of bitcoin that is protected by $125 million in insurance.” – Bakkt Announcement
A key point to note is where Bakkt will be getting price information from. Current sources in the cryptocurrency markets are provided by exchanges, which have been known to deliberately manipulate volume and provide inaccurate information. This is something that statistic Website CoinMarketCap has frequently complained about.
“Uniquely, Bakkt bitcoin futures contracts will not rely upon unregulated spot markets for settlement prices, thus serving as a transparent price discovery mechanism for the benchmark price for bitcoin.” – Bakkt Announcement
Before the big launch, Bakkt will continue testing and prepping. Could this be the trigger that pushes Bitcoin above key resistance levels at $14,000? The remaining half of 2019 is looking better and better for cryptocurrencies!
This is not investment advice; please always do thorough research and only invest what you are willing to lose, especially in times of uncertainty.
