Yesterday's big announcement that legal approval was given to Bakkt may be the best news bitcoin investors have had this year. It opens the door for institutional investors and is a major step forward for the legitimization of the crypto industry in the United States.
Baked To Launch Next Month
After months of release, the new cryptocurrency trading platform launched by the Intercontinental Exchange (ICE) has finally been given the green light. The news that the Commodity Futures Trading Commission (CFTC), and the New York State Department of Financial Services, have given government approval broke late yesterday as reported by Bitcoinist.
The term physically delivered bitcoin futures will require investors to either actually produce BTC or take delivery of them from their respective exchanges and platforms. Crypto trader at TexasWest Capital, Scott Melker, who also goes on the twitter handle & # 39; Wolf of All Streets & # 39; stated that the news was & # 39; arguably the most bullish event for institutional investors in bitcoin & # 39; history. & # 39;
The @ Bakkt news is arguably the most bullish event for institutional investors in bitcoin history. PHYSICALLY provided futures (requires the holder to either actually produce bitcoin or take delivery from the stock exchange) supported by the New York Stock Exchange. We mature.
̵1; The Wolf Of All Streets (@scottmelker) August 16, 2019
Being supported by the New York Stock Exchange has given bitcoin a level of credentialing that was never seen before. Investors will have the opportunity to trade in daily and monthly physical futures contracts for bitcoin which is likely to lead to greater mainstream adoption.
Bakkt also plans to board a number of commercial retailers such as Starbucks that will provide an easier way for people to make purchases using bitcoin and other cryptocurrencies.
General Counsel for Compound Finance, Jake Chervinsky, was equally gay in the Bakkt News and stated that:
"It offers a way for large, risk-averse institutions to buy and deposit bitcoin through an end-to-end regulated system approved by CFTC and NYDFS, and supported by strong reputation for ICE. Compliance lawyers cheer! "
The former prosecutor also noted that there is still a long way to go since the SEC is still struggling. When asked about the possibility of large investors trying to short bitcoin, he added;
“Short sellers who target a commodity are unlikely to retain the underlying, so short-circuiting via physically delivered futures is more for net-long units (such as miners) and want to secure. ”
Fintech Business Analyst walks by twitter handle & # 39; Mr. Gordon & # 39; s was just as hectic on Bakkt;
“This must be how it feels to win the lottery! The confirmation of the launch of #Bakkt is changing everything …
Those of us who have invested in crytpo over the last couple of years now have some very serious decisions to make … "
This must be how it feels to win lottery! The confirmation of the launch of #Backed ALWAYS changes ..
Those of us who have invested in crytpo over the last couple of years now have some very serious decisions to make … ..
Like what color you should get 😃 pic.twitter.com/Klo5GwOWY7
– Mr Gordon (@MrGordon_UK) August 16, 2019
Choosing a Lambo color is probably a bit presumptive at that moment. The Bitcoin price didn't even respond to the announcement as markets remain choppy this morning. BTC is still consolidating its mid-$ 10,000 range after two falls in four-digit territory late this week, but the long-term outlook has just brightened considerably.
Will Bakkt send Bitcoin price to a new all-time high later this year? Add your thoughts below.
Images via Bitcoinist Image Library, Twitter: @scottmelker, @MrGordon_UK