By
Steve Muchoki
April 19th, 2024
Bakkt has officially announced the launch of cash-settled Bitcoin futures that will be listed by ICE Futures Singapore on December 9.
Blockchain activists used to praise Bakkt for introducing Bitcoin-settled futures. From the “OG” standpoint, any Bitcoin-alike asset looks somewhat shady if it is not backed by a government or a company with astronomical budgets and shiny names in the board of directors.
But “Bitcoin free” trading is considered normal among many of the crypto activists. However, the recent announcement made by ICE regarding the Bakkt futures made traders wonder. They took an aggressive approach and asked ICE and Bakkt via social networks about the necessity of the offer.
For instance, Crypto_Deniro is arguing on Twitter that Bakkt has promised to deliver Bitcoin backed futures, not the U.S. dollar-backed ones.
https://twitter.com/jwymanm/status/1197672934342635520?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1197672934342635520&ref_url=https:/beincrypto.com/bakkt-launching-bitcoin-to-usd-settled-futures-contracts-on-december-9/
As we can see, the trader wants Bakkt to work less like CME, and more as they’ve promised. Ree admits that such futures are “completely virtual,” which presumably means that he does not believe in “crypto” futures in the case when they’re not backed by actual coins.
CME is offering cash-backed futures for a quite long time and considered by some as one of the few secretive hubs related to crypto influencers “mafia.”
Yes, the cash-settled futures will allow Bakkt to use their hardcore Bitcoin vault less and buy/sell more of the U.S. dollars via ICE Singapore. But this is a common sin – trading the asset you claim you don’t like if it gives immediate, huge, sometimes unregistered profits.
One of the famous YT bloggers has posted a Twitter response on such actions, claiming that Bakkt was created merely as yet another attack vector to harm Bitcoin. Because, when you trade using such platforms, you don’t trade actual bitcoins, rather a “derivative” from it. This can and can not influence the rest of the market in many ways, including things like liquidity loss and inaccurate market stats.
Crypto Traders Didn’t Appreciate New Bakkt’s Initiative
During Q4, Bakkt is attracting more and more trading volume, and they are ready to offer Bitcoin to dollar-settled futures. Also, ICE Singapore issued official press-release regarding them listing the Bakkt’s product. It reads:
“Our new cash-settled futures contract will offer investors in and around the world a convenient, capital efficient way to gain or hedge exposure in bitcoin markets. Building off the success of our deliverable futures contract, the cash-settled futures will leverage ICE’s regulated, globally-accessible market to offer a safe, secure, and compliant environment for the trading of bitcoin.”
This time, we hear no applause from the retail investors because they expected the platform to move further with their initial love to the first cryptocurrency. Instead, Bakkt, CME and ICE are going mad to support the U.S. dollar with their liquidity features and huge user base.
The first loud Bakkt’s product launch served an example of what those institutions can do to gain their little piece of Bitcoin. Back then, the price of Bitcoin lost $2000 overnight during the Bakkt’s service launch, instead of going directly to the moon as everyone predicted.
Maybe, the markets are not that simple? Only time will tell.