In a key twitter proclamation, the team at the highly anticipated Wall Street company of Bakkt acquainted the Cryptocurrency and investing group of its initial physically fixed Bitcoin (BTC) futures contracts.
In a tweet, the team at Bakkt proclaimed that:
“Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP and EUR. For example, buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.”
This latter action of safely keeping Cryptos has been put forward as one of the major reasons the U.S SEC might ratify a Bitcoin ETF sooner or later. Backed by ICE, Bakkt clears the puzzle of custody services for potential institutional investors. The absence of a significant Exchange offering custodial services has been raised as a reason the US SEC might be delaying the approval of a BTC backed ETF.
CNBC's Brian Kelly elaborated on this when he noted the following:
“This is huge news. I think the market is completely underappreciated. So let us talk about why [Bakkt] is the biggest news of the year for Bitcoin.
It paves the way for a Bitcoin ETF. Last week I stood here and said you know what, I don’t think the Bitcoin ETF will get approved. And guess what? The Winklevoss ETF got rejected. Why?
Because there was not a US regulated exchange and there wasn’t US regulated custody.”
With the rollout of Bakkt planned for November, it is only reasonable that several cryptocurrency analysts have gone on to forecast that there might be a Bitcoin breakout resulting after the fact.
Alex Reinhardt, Venture investor, business development expert, serial entrepreneur, Co-Founder and CEO of ELVN Crypto Messenger and Wallet, stated to Coinidol:
“The fact that legal Bitcoin futures are released on the market is, without a doubt, a good sign for the industry development. This event indicates that, at last, the period of legalization and acceptance of crypto coins by the authorities is beginning. However, at the same time, futures continue to be a very risky subject for investment for an ordinary user.”