Bakkt made a massive Twitter announcement and the team behind the company revealed for the cryptosphere that it has its very first physically settled Bitcoin futures contracts. The highly anticipated firm informed the community the following exciting announcement:
“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.”
Back in August, The Intercontinental Exchange (ICE) which owns the New York Stock Exchange (NYSE) teamed up with Microsoft, BCG, Starbucks, and more impressive names in order to launch Bakkt.
The company is working hard to build an open, seamless global network to enable investors, merchants and consumers to buy, sell, store and sp0end crypto in the most straightforward, efficient and secure way possible.
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.
If you remember, one of the reasons for which the SEC did not immediately approve a Bitcoin ETF involved the issues around securely storing digital assets.
Backed by ICE, Bakkt manages to solve this problem of custody services for large-scale institutional investors.
The lack of a major Exchange that can provide custody services has been put forth as a reason for which the SEC might be still delaying the approval of a Bitcoin-backed ETF.
CNBC’s Brian Kelly explained this when he stated 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.”
Bakkt is working to address the unique requirements of regulated institutions, their clients and stakeholders, such as merchants and consumers. Our goal is to make digital assets more liquid, trusted and accessible; allowing meaningful innovation to follow.
He continued and said “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.”
Bakkt’s launch is scheduled for November, and when this happens, it would only be natural that this event marks a BTC breakout, according to analysts.