Bakkt Focused on Bitcoin for its Nature, Liquidity and Legal Status.
Bakkt’s decision to postpone its Bitcoin (BTC) futures market caused disappointment in several members of the crypto community who were hoping to see a last bullish run in the prices of the popular cryptocurrency thanks to a possible increase in trading volume.
However, despite the disappointment, Bakkt’s team has been emphatic in highlighting that a futures market in Bitcoin (BTC) WILL happen and that they are working hard on “get all the pieces in place” to ensure that its product meets every legal, technological and economic expectation associated with a market as important as Bitcoin (BTC).
Given the volume of interest in Bakkt and work required to get all of the pieces in place, we will now be targeting January 24, 2019 for our launch to ensure that our participants are ready to trade on Day 1
Although the delay was to provide a better service, the company made a new series of tweets expressing an optimistic view of Bitcoin and the reasons behind the choice of this cryptocurrency over any other option that could have been considered.
In a 2-tweets statement, the company was able to perfectly condense the reasons that make Bitcoin a solid product with prospects of gaining more and more importance in the financial markets. They commented that the “danger” of being cataloged as security has already passed and that the legal situation of this cryptocurrency is favorable for a large-cap futures market;
We've been asked why we're starting with bitcoin. Here's why:
Bitcoin today accounts for over half of total crypto market capitalization and has been deemed to be a commodity, and its derivatives are regulated in the US by the CFTC… (1/2)
Also, in an FAQ, the company explains how the price of bitcoin will be established once the futures market is operative:
“Given the transparency and regulation of the futures markets, the futures price in a one-day physically settled Bitcoin contract will serve as a price discovery contract for the market. There is no reliance on cash platforms for settlement prices for pricing the daily Bitcoin futures contract,”
It is also important to note that despite being highly optimistic about Bitcoin, Bakkt does not rule out the option of opening futures markets for other cryptocurrencies:
“We’ll consider additional contracts as the landscape evolves and as we receive additional customer feedback about what they want and need.”
As reported by Ethereum World News, the new date Bakkt has set for launching its Bitcoin (BTC) futures market is January 24th, 2019.
Bakkt’s statements seem to have generated a positive effect on the community that gave more than 2.4k likes to the company’s “compliments” regarding the Bitcoin (BTC), but this does not seem to have generated in the market a bullish effect proportional to the bearish sentiment caused by the delay.