Bakkt an unprecedented event, for the first time the largest institutions will have the opportunity to invest safely in a regulated and liquid market cryptocurrency without any restrictions.
The winter period on the cryptocurrency market may end soon!
12 December 2018 year institution Intercontinental Exchange (ICE) will allow trading of new Bakkt contracts Bitcoin (USD) and additionally introduce a "warehousing" service Bitcoin.
One of the most interesting things is the fact that contracts for Bakkt are to be settled through "Physical" security in the form Bitcoin. Of course, this means increased demand for this cryptocurrency. The stock market for a change Bitmex operates contracts for many millions without the need for physical collateral Bitcoin.
Bakkt was created in August 2018 by ICE (Intercontinental Exchange builds), it is a powerful player who controls the New York Stock Exchange.
Companies that support this project include Star Bucks and, among others Microsoft.
In August 2018, the parent company ICE issued a statement in which she announced that she was going to use Azure's cloud service Microsoft with the aim of "creating an open and regulated global ecosystem of digital resources". Star Bucks is to be one of the first customers to use Bakkt services.
All transactions will be settled in USD, the minimum amount in a single contract is 10 Bitcoins.
"In bringing the unregulated markets,"
ICE is a powerful player operating on the market, which can raise capitalization repeatedly.
This is a completely new venture, ICE declared that it wants to make Bitcoin a global cryptocurrency which will be able to trade on a much wider market than before. ICE has established cooperation with financial regulators and specialists in the field of advisory in retail and technological trade, thanks to which they want to create a market on which trade will take place in an easy, safe and compliant manner BTC.
It is worth noting that the world of great finance and large players approached the market very distrustfully and cautiously, mainly due to the lack of regulation, risk and instability in the cryptocurrency market. There have been and are still many manipulations on the cryptocurrency market, which also do not encourage large players to invest, all this was not a encouraging signal to the world of finance. Bakkt's goal is to change this "risky" market.
"Bakkt CEO Kelly Loeffler said in the statement." Bakkt is designed to serve as a scalable on-ramp for institutional, merchandise and consumer participation. "We are collaborating to build an open market that unlocks the potential of global markets and commerce."
Entry into the game of ICE institutions can change the game. The project is fully involved, among others, founder and CEO of ICE Jeff Sprecher, which is a well-known investor, is credited with, among others, the modernization of the largest stock exchange NYSEthat accounts for 1.5 one billion shares per day.
Probably under the leadership of Sprecher, the new Bitcoin (USD) contracts will also be varied with other transactions in addition to BTC and this could literally overshadow the currently popular futures trading offered by CM extension and CBOE, i.e. on the Bitmex exchange, among others.
Many analysts link the entry of CME futures with declines in the cryptocurrency market, due to the fact that futures contracts allow you to play declines without financial constraints, but also without the need for "physical" cryptocurrencies. In this way, the entire market is susceptible to manipulation of a purely "paper" contract, with no security in real cryptocurrencies. Bakkt is also the answer to this problem.
The main goal of Bakkt is to create a regulated environment for cryptocurrencies, create a platform for institutional investors as well as ordinary investors. The effect is to be immediate and Bitcoin is to be used by Wall Street as a popular alternative to stocks and bonds.
Thanks to Bakkt, the cryptocurrency market is to ultimately generate a huge turnover, thus opening the gate for institutions such as, for example, pension funds, which will be able to invest part of their portfolio on the cryptocurrency market.
As a result, the cryptocurrency market is supposed to be free from sudden fluctuations in the market due to high liquidity! Let's hope that the cryptocurrency market in December 2018 will revive, because thanks to the project Bakkt we have a clear signal that Wall Street is ready to "enter" this market.
It is worth adding that the skeptical part of the crypto-currency community has reasonable doubts about the entire ICE project. Bakkt tries to overcome regulations that the cryptocurrency market could not have jumped from 10 for years!
This is an additional fact thanks to which we should carefully watch this project and its impact on the cryptocurrency market.