Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Bakkt Digital Asset Summit highlighted important developments in the launch of Bakkt Bitcoin Futures, which beta release is expected today. CFTC commissioner Dawn Stamp acknowledged the high demand for the derivative product.
As per its earlier schedule, ICE’s Bakkt platform is all set to start testing its Bitcoin Futures today, July 22. Bakkt has been working on its Bitcoin Futures contracts for almost a year and investors are eagerly waiting for its entry in the crypto market.
While Bakkt just starts testing its Bitcoin Futures, its launch is imminent this quarter, believes Sam Doctor, the managing director at Fundstrat Global Advisors. Sam spoke about the same in a Twitter post published last Friday, July 19.
We think #Bakkt could be a huge catalyst for institutional participation in the #crypto market. Here are our takeaways from the Bakkt institutional summit yesterday at the NYSE… #bitcoin #BTC #ETH @fundstrat @fundstrat_ken pic.twitter.com/lkRylD1P4C
— Sam Doctor (@fundstratQuant) July 19, 2019
The post includes some crucial observations made by Fundstrat at the Bakkt Digital Asset Summit on July 18. Fundstrat believes that the Bakkt Bitcoin Futures launch will be a major catalyst to trigger institutional participation.
Triggering Institutional Participation
Since long, the retail investors have been waiting on the sidelines for institutions to enter the crypto space. Institutional participation is likely to flood the crypto market with a huge capital inrush thereby triggering a bull run. The Fundstrat post notes:
“There appears to be a critical mass of adopters ready to come on board on Day 1 of the Bakkt launch, with the sales team gaining traction among brokers, market makers, prop trading desks and liquidity providers.”
Sam Doctor also said that this was his first-hand experience of attending an event having representatives from over 150 countries and institutions attend it. The Bakkt Bitcoin Futures would probably be the first U.S.-regulated vehicle with the physical token settlement. Doctor wrote:
“As we have written before, Bakkt tackles many of the barriers to adoption for traditional investors seeking to expand their mandate to include crypto.”
Earlier this month, Bakkt competitors ErisX and LedgerX secured licenses from CFTC to act as custodians of physically-settled Bitcoin Futures contracts. This could encourage more exchange to work on the Bitcoin Futures product going ahead.
At the Bakkt Digital Asset Summit, Commodities Futures Trading Commission (CFTC) commissioner Dawn Stump also said that Bitcoin doesn’t threaten the financial stability and there is a growing interest and demand for Bitcoin Futures in the market.
Bakkt Working on a Digital Asset Wallet
Last month’s report from The Block suggests that Bakkt has got a new Google expert to work on its cryptocurrency payments wallet. Despite the continuous delay in the launch of its Bitcoin Futures, Bakkt has continued its work across other facets and hiring more people to its team.
Sources for The Block suggest that Bakkt may soon launch its mobile application, following the Bitcoin Futures. Bakkt’s newly updated website also highlights the company’s work in digital payments. The Bakkt website reads:
“Whether between consumers and merchants or peers, the ability to conduct transactions in digital assets holds promise as a these new global currencies evolve beyond a store of value or speculative assets, and as distributed ledger technology scales. Bakkt is working with leading merchants who recognize the potential of digital assets.”