Bakkt spurring bitcoin purchases – from the perspective of Bakkt’s owners, the 2018 crypto bear market was fantastic! For the rest of us? Not so much.
NYSE Chairman Jeffrey Sprecher, the CEO of of Bakkt’s parent company, Intercontinental Exchange (ICE), remarked that the crypto bear market was a boon for the platform. ICE isn’t the only organization bankrolling Bakkt – Microsoft, Starbucks, and BCG are in on the action too.
Sprecher made these remarks in an attempt to put a positive spin to one of the longest periods of a bear market in the cryptocurrency industry. He said that this winter gave Bakkt time to build the platform and buy Bitcoin at relatively cheap prices.
Bakkt plans on facilitating Bitcoin futures trading for institutional investors – the news of Bakkt electrified the crypto community – we’ve been waiting ever since they announced in August of 2018 for the platform to launch!
Bakkt will also provide custody and price discovery for Bitcoin. Bitcoin, recognized as a commodity by the CFTC, will need to be traded on the platform free from market manipulation and fraud.
Bakkt’s launch hasn’t been the most consistent. It was supposed to have gone live in January of this year, however, due to regulatory delays, its release has been delayed several times. As of today, there isn’t a launch date for the new platform.
But it’s not all gloom and doom – in fact, the delays have just enabled Bakkt to recruit new talent and make new acquisitions.
On April 29th, Bakkt acquired crypto-custody firm Digital Asset Custody for an undisclosed amount. The purchase is part of Bakkt’s sweeping efforts to win regulatory approval for its cryptocurrency products.
Most importantly, Sprecher believes that Bitcoin is here to stay – it won’t die. He remains bullish about the future of virtual currencies. Sprecher has, in the past, reiterated his belief in the bullishness of cryptocurrency and bitcoin. He once called Bakkt a “moonshot bet” for ICE. He’s not alone – J. Christopher Giancarlo, the retiring chairman of the CFTC, foresees a massive spike in interest in cryptocurrencies with the launch of Bitcoin futures products.
What do you think? We’ve talked endlessly about Bakkt. Do you think Bakkt will be a game changer and end the crypto winter? Let us know on our Facebook page!
